When adjusting the sale price of a comparable property with three bedrooms to reflect a property with four bedrooms, how is the adjustment made?

In adjusting the sale price of a comparable property to account for a difference in the number of bedrooms, the adjustment reflects the additional value that an extra bedroom typically adds to a home. When comparing properties, having more bedrooms generally increases a property's desirability and market value.

In this scenario, since the subject property has four bedrooms while the comparable has three, the correct approach is to add value to the comparable property to align it with the subject's additional bedroom. This is represented by increasing the comparable's sale price—indicating that the comparable would need to be valued higher to match the features of the subject property.

The rationale behind this adjustment stems from market trends and buyer preferences, which often view extra bedrooms not merely as an enhancement of space but as a significant factor in the appeal and functionality of a residence. Therefore, valuing the comparable higher by a specified amount effectively places it on par with the subject property's features.

The specific amount of adjustment can vary based on local market data and conditions, but in this case, the adjustment is correctly viewed as a positive addition to the comparable property’s value.