California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

Practice this question and more.

In the sales comparison approach, adjustments are made to which property to make it like the subject property?

The subject
The comparable
Both properties
Neither property

The correct answer is: The comparable

In the sales comparison approach, adjustments are made to the comparable property to make it more similar to the subject property. This is because the comparable property is used to determine an accurate market value for the subject property. Adjustments are made based on any differences between the subject property and the comparable property, such as location, size, features, etc. This allows for a more accurate appraisal of the subject property and its potential market value. Options A and C are incorrect because adjustments are not made to the subject property itself as it is the property being appraised. Option D is incorrect because adjustments are essential to the sales comparison approach and are made to ensure the accuracy of the appraisal.