Certified Pennsylvania Evaluator Practice Exam

If a property is inferior to the subject, how does the adjustment affect the value of the comparison?

1. Decrease

2. Stabilize

3. Increase

4. Eliminate

The correct answer is: Increase

When a property being compared is deemed inferior to the subject property, this requires an adjustment to the value for appraisal purposes. The rationale behind this adjustment is grounded in the concept of equivalency; in order to establish a fair comparison, the value of the inferior property must be increased to reflect the qualities and benefits of the subject property. This increase serves to bridge the gap in value perceptions between the inferior property and the subject property. The intent is to amend the value estimate of the inferior property so that it aligns more closely with the subject's worth, thereby providing a more accurate basis for comparison. Therefore, the adjustment amount is added to the inferior property’s value, which results in an increase in its adjusted value to better match or reflect the attributes of the subject property. Adjustments are key in comparative market analysis, ensuring that appraisals are grounded in a realistic assessment of property values based on their respective conditions and characteristics.