A comparative market analysis (CMA) that uses adjustments assumes what about the comparable property?

A comparative market analysis (CMA) that uses adjustments assumes what about the comparable property?

• A. Adjustments are optional
• B. Adjustments for differences have been made to the comparable property
• C. No adjustments are needed
• D. Adjustments for differences have been made to the subject property

Answer: (B)

The idea is to make the apples-to-apples comparison. In a CMA that uses adjustments, you adjust the price of each comparable to reflect how it differs from the subject property. This means the comparable is treated as if it had the subject’s characteristics, or vice versa, so the adjusted prices can be meaningfully compared to the subject’s value. If a comparable has features the subject lacks (or vice versa), you add or subtract value from the comparable’s price accordingly. This is why the assumption is that adjustments for differences have been made to the comparable property.

The idea is to make the apples-to-apples comparison. In a CMA that uses adjustments, you adjust the price of each comparable to reflect how it differs from the subject property. This means the comparable is treated as if it had the subject’s characteristics, or vice versa, so the adjusted prices can be meaningfully compared to the subject’s value. If a comparable has features the subject lacks (or vice versa), you add or subtract value from the comparable’s price accordingly. This is why the assumption is that adjustments for differences have been made to the comparable property.