Which statement best describes adjustments in a CMA for differences in features such as bedrooms and square footage?

• A. Do not adjust for differences
• B. Adjust only for age of home
• C. Adjust only for location
• D. Make adjustments for each difference in features such as bedrooms and square footage

Answer: (D)

In a CMA, you adjust for each material difference between the subject property and the comparables to make them truly comparable. Every feature—bedrooms, square footage, bathrooms, lot size, age, condition, location—has an impact on value, so you quantify how much value that feature adds or subtracts and apply that amount to the comparable’s price. The goal is to reflect the exact difference in features, not ignore them. For example, if a comparable has an extra bedroom, you would adjust its price downward by the value of that extra bedroom to align with the subject; if a comparable has more square footage, you would adjust accordingly to account for that difference. Do this for each difference in features, using market data, so the adjusted prices of the comps provide a consistent, apples-to-apples basis for estimating the subject’s value.