In the sales comparison approach, what happens to the value of a component in a comparable that is not present in the subject property?

In the sales comparison approach, comparables are properties that have recently sold and are similar to the subject property being appraised. The goal is to determine the market value of the subject property based on these comparable sales. When a component or feature is found in the comparable property that is not present in the subject property, it is considered a premium or an additional value feature.

To accurately assess the value of the subject property, the appraiser needs to adjust the selling price of the comparable downward. The rationale behind this is based on reflecting what a buyer would pay for the subject property, assuming it lacks that specific component. By subtracting the value attributed to that feature from the comparable's selling price, the appraiser acknowledges that the subject property is worth less than the comparable due to the absence of that feature.

This method ensures a fair assessment and comparison, leading to a more accurate valuation of the subject property in relation to the market.