In the sales comparison approach, using comparables that are five and 15 years old when appraising a subject that is 10 years old is an example of what?

Question

Mathematics

Jimmy Johnson

19 March, 22:53

In the sales comparison approach, using comparables that are five and 15 years old when appraising a subject that is 10 years old is an example of what?

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Answers (1)

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Gideon Mccall · Answer 1

Answer: Age adjustment

Step-by-step explanation:

The market takes account of the age of a structure.

If the subject is 5years old and the comparable is 15years old and is sold for an amount x. The value of the 10years difference is y. You need to add y because the 15 year old subject is considered worse or inferior to the 5 year old subject.