Texas Crammer Practice Exam

When making value adjustments, what should an appraiser do?

1. Adjust the subject property

2. Adjust both properties equally

3. Make adjustments to the comparables

4. Leave the properties as they are

The correct answer is: Make adjustments to the comparables

When making value adjustments, the correct approach is to make adjustments to the comparables. This method involves evaluating the differences between the subject property and the properties being used for comparison (comparables). By adjusting the comparables, the appraiser is able to account for factors such as size, condition, location, and any other relevant characteristics that might affect value. This practice is grounded in the principle of comparing similar properties to ensure an accurate market value for the subject property. Adjusting the comparables allows the appraiser to create a more precise estimate that reflects what the subject property would likely sell for in the market, after considering the differences from the comparables. In this context, it is not appropriate to adjust the subject property itself, as the goal is to maintain it as a fixed reference point while evaluating how other properties relate to it. Therefore, leaving the properties as they are or attempting to adjust both properties equally would not yield a clear picture of their relative values in the market, which is essential for an accurate appraisal.