18. When valuing a 3-bed home, one comparable has 4 beds. The 4th bedroom adds ~$8,000. What adjustment should be made?
Answer: D
The adjustment should be to subtract $8,000.
When valuing a 3-bed home in comparison to a 4-bed home, the additional bedroom adds value. Therefore, to compare the homes accurately, an adjustment of $8,000 should be subtracted from the value of the 4-bed home.
A) Add $8
This option is incorrect because adding $8 does not reflect the value of the additional bedroom. The adjustment should account for the difference in the number of bedrooms and the added value of the 4th bedroom.
B) Add $8
Similar to option A, this choice is incorrect for the same reasons. The adjustment should not be a small addition but rather a significant subtraction to align the values of the two comparable homes.
C) Subtract $8
While this option correctly indicates a subtraction, it mistakenly suggests an amount of $8 rather than the accurate value of $8,000. Therefore, this option does not represent the correct adjustment needed for the valuation.
D) Subtract $8
This option correctly identifies that an adjustment should be made to lower the value of the 4-bed home when comparing it to a 3-bed home. The correct adjustment is to subtract the value of the additional bedroom, which is $8,000.
Conclusion
The only correct adjustment is to subtract $8,000 to accurately reflect the difference in value between the two properties. Options A and B incorrectly suggest adding a minimal amount, while option C fails to account for the correct value of $8,000. Thus, option D is the definitive correct choice.