Origination ActivitiesQuestion 272 of 400
An appraiser adjusts a comparable that has an extra bathroom compared to the subject property. In the sales comparison approach, adjustments are made to the:
a.Subject property, to match each comparable
b.Comparable properties, to make them reflect the subject
c.Loan amount, to match the appraisal
d.Borrower's income, to match the value
Explanation
In the sales comparison approach, adjustments are applied to the comparable sales, not the subject, to account for differences so each comp reflects what the subject would sell for. If a comp is superior (extra bath), its price is adjusted downward. The subject is never adjusted.
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