Illinois Real Estate Exam Practice Question
An owner has decided to sell a home. The home currently has a one-car garage. All the recent sales comps in the neighborhood have two-car garages. After checking with contractors, the owner finds that expanding the garage to accommodate a second car would cost $12,000. When performing a comparative market analysis for this property, a broker would make what kind of an adjustment?
Correct Answer: B
Rationale: In a comparative market analysis, adjustments are made to align the subject property with the recent sales comps. Since the owner’s home has a one-car garage, while comps feature two-car garages, it is necessary to account for this difference. The cost to expand the garage is $12,000, which indicates a reduction in value for the owner’s home compared to the comps.
Option A is incorrect, as adding value would misrepresent the home’s worth relative to better-equipped properties. Option C is wrong because increasing the sales price of comps does not address the subject property’s deficiency. Option D is also incorrect, as it suggests incorrectly adjusting the comps instead of the subject property.
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