Question 68

Comp 1's value should be adjusted by adding $40,000.

To accurately reflect the differences between the subject property and Comp 1, $40,000 should be added to Comp 1's value. This adjustment accounts for the absence of a pool and the one fewer bathroom.

A) subtract $20,000 from Comp 1's value

This option is incorrect because it suggests a reduction that does not accurately reflect the missing features of the subject property. Comp 1 lacks both a pool valued at $30,000 and one bathroom valued at $10,000; therefore, a negative adjustment does not align with the necessary compensations.

B) add $20,000 to Comp 1's value

This choice is also incorrect as it underestimates the required adjustments. While Comp 1 is missing one bathroom worth $10,000, it fails to account for the absence of the pool, which is a significant feature valued at $30,000. The total adjustment should reflect both missing components.

C) add $40,000 to Comp 1's value

This option is correct because it accurately compensates for the lack of the pool ($30,000) and one bathroom ($10,000) in Comp 1. The total adjustment of $40,000 reflects the combined value of these missing features, ensuring that the comparison to the subject property is fair and justified.

D) subtract $40,000 from Comp 1's value

This option is incorrect as it suggests an unjustified decrease in value. Instead of subtracting, the adjustments should reflect the additional value that Comp 1 would need to match the subject property. The absence of the pool and one bathroom merits an increase, not a decrease.

Conclusion

The correct adjustment for Comp 1's value is to add $40,000, which accurately reflects the value of the pool and the additional bathroom present in the subject property. All other options fail to account for the full value of the missing features, resulting in incorrect adjustments that do not align with the principles of property comparison.