In a comparable market analysis, the net adjustment for size and physical condition is given as minus $3,000. Which of the following best represents this result?

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Multiple Choice

In a comparable market analysis, the net adjustment for size and physical condition is given as minus $3,000. Which of the following best represents this result?

Explanation:
In a comparable market analysis, you adjust each comparable’s price to reflect differences in size and condition relative to the subject. The net adjustment shows the total direction and amount of those changes. A negative net adjustment means you subtract that amount from the comparable’s price to account for the subject’s characteristics. So, a net adjustment for size and physical condition of minus $3,000 indicates the comparable should be reduced by $3,000 when estimating value for the subject. The other numbers would imply different magnitudes or the opposite direction of adjustment, which isn’t what’s described here.

In a comparable market analysis, you adjust each comparable’s price to reflect differences in size and condition relative to the subject. The net adjustment shows the total direction and amount of those changes. A negative net adjustment means you subtract that amount from the comparable’s price to account for the subject’s characteristics. So, a net adjustment for size and physical condition of minus $3,000 indicates the comparable should be reduced by $3,000 when estimating value for the subject. The other numbers would imply different magnitudes or the opposite direction of adjustment, which isn’t what’s described here.

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