Final answer:
In the sales comparison approach, adjustments are needed when differences exist between the subject property and comparables, such as financing terms, roof types, location, and seller financing conditions.
Step-by-step explanation:
In the context of the sales comparison approach, an adjustment is warranted under certain circumstances, such as when comparables differ from the subject property in significant ways that affect value.
Among the options provided, an adjustment would be warranted if:
- The buyer obtains conventional financing for the property, primarily if the terms are different from those of comparable sales.
- The property has a different roof type, like a hip roof versus a gabled roof, which might be a stylistic or functional difference impacting value.
- A comparable is located in another neighborhood, even if similar, since location is a critical factor in property valuation.
- The seller offers below-market seller financing, which could affect the reported sale price and thus needs to be considered in the comparative analysis.
In each of these scenarios, appropriate adjustments must be made to ensure that the comparison is fair and reflects the true value of the property under consideration.