Question 68

Add $40,000 to Comp 1's value

To adjust Comp 1's value appropriately, an addition of $40,000 is necessary. This amount reflects the total value of the features that Comp 1 lacks compared to the subject property, specifically the pool and the additional bathroom.

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

Subtracting $20,000 from Comp 1's value is incorrect because it fails to account for the value of the features that Comp 1 lacks. The subject property has a pool valued at $30,000 and two bathrooms valued at $10,000 each, totaling $50,000. Therefore, subtracting only $20,000 does not accurately represent the necessary adjustment.

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

Adding $20,000 to Comp 1's value is also incorrect because it does not encompass the full value of the differences between the subject property and Comp 1. The total value of the missing features amounts to $50,000, meaning an adjustment of only $20,000 is insufficient.

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

Adding $40,000 to Comp 1's value is the correct adjustment. This figure accurately reflects the value of one of the two bathrooms ($10,000) and the pool ($30,000) that Comp 1 lacks, totaling $40,000. This adjustment aligns with the comparative valuation principles in real estate.

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

Subtracting $40,000 from Comp 1's value is incorrect as it misinterprets the adjustments necessary. Instead of reducing the value, we need to increase it to account for the features that the subject property has which Comp 1 does not.

Conclusion

The correct adjustment is to add $40,000 to Comp 1's value to account for the lack of a pool and one bathroom. All other options misrepresent the value of the missing features, either by incorrectly subtracting or failing to add the necessary amounts, thus illustrating the importance of accurate adjustments in comparative property valuation.