Question

In valuing a single-family residence by the comparison approach, an appraiser would make adjustments to:

a) The subject property
b) Comparable properties
c) The neighborhood
d) The cost approach

Answer 1

An appraiser would make adjustments to the comparable properties, not the subject property, neighborhood, or cost approach, when using the comparison method to value a single-family residence. option (B)

Step-by-step explanation:

When valuing a single-family residence using the comparison approach, an appraiser must make adjustments to the prices of the comparable properties, not to the subject property, neighborhood, or cost approach. The main reasons for these adjustments are to account for differences between the features of the subject property and those of each comparable property.

These features can include location, size, condition, and amenities, among others. By adjusting the selling prices of comparable properties, the appraiser is able to derive a more accurate value for the subject property. This method stems from the principle that a property's value can be determined by analyzing the sale prices of similar properties in the same market.