In a competitive market analysis, a comparable property is slightly older than the subject and is worth $2,000 less due to age. The comparable has a porch worth $1,000 that the subject lacks. If the comparable sold for $269,500, what is the estimated value of the subject property?

• A. 269,500
• B. 270,500
• C. 271,500
• D. 268,500

Answer: (B)

In a CMA, you adjust the sale price of each comparable to reflect the differences between the comp and the subject so you’re comparing apples to apples. Here, the subject is newer, so it would be worth more by about 2,000—the comp is older, which reduces its value by 2,000. The comparable includes a porch that the subject lacks, which gives the comp an extra 1,000 of value; since the subject doesn’t have that feature, you would subtract 1,000 from the comp’s value to reflect the subject’s lower feature set. Net adjustment is plus 2,000 minus 1,000, or plus 1,000. So the subject’s estimated value is 269,500 + 1,000 = 270,500.