If an appraiser has a subject property with two bedrooms and one of the comparables has three bedrooms, what type of adjustment should be made?

When considering the context of real estate appraisal, it is essential to understand how adjustments are made based on the differences between the subject property and comparable properties. In the case presented, the subject property has two bedrooms, while one of the comparables has three bedrooms.

In this scenario, the comparable property with three bedrooms is more desirable and typically would command a higher market value than the two-bedroom subject property. Therefore, to reconcile the differences and arrive at an accurate comparison, the appraiser needs to adjust the value of the comparable property down to align it with the subject property.

This adjustment reflects the principle that buyers generally pay more for features such as additional bedrooms, so removing or decreasing the value associated with the extra bedroom in the comparable will give a more accurate picture of what the subject property is worth. This process helps create a fair and equitable comparison for the purpose of valuation.