Using the sales comparison approach, how should you adjust values when one comparable has a fireplace and the subject home does not, but the subject home has a balcony?

In the sales comparison approach to property valuation, adjustments are made to account for differences between the subject property and the comparable properties. When one comparable has a feature, such as a fireplace, that the subject home lacks, an adjustment is needed to ensure an apples-to-apples comparison.

The correct approach in this situation involves subtracting the value of the fireplace from the comparable property since it is an additional feature that the subject property does not possess. Conversely, since the subject property has a balcony that the comparable does not have, you would need to add the value of the balcony to the comparable's value. This way, you're creating a level playing field to assess the true market value of each property relative to the other.

This method ensures a fair comparison by taking into account the differences in features and their respective values, which ultimately leads to a more accurate appraisal of the subject home's value in relation to the comparable properties.