How should an appraiser adjust the value of comparable property based on bedroom count?

The correct approach for an appraiser when adjusting the value of comparable properties based on bedroom count involves adding a specific value for each additional bedroom that the subject property has compared to the comparables. In this case, adding $5,000 for each extra bedroom provides a standard adjustment reflecting the market value that buyers associate with additional living space.

Property valuation relies heavily on market perceptions and the functionality that more bedrooms provide to a household. Bedrooms increase a home’s appeal, utility, and potential resale value, as they typically allow for more occupancy or flexible living arrangements. Therefore, an appraiser would quantify this added value by incrementally increasing the value of the subject property for each additional bedroom it has compared to the comparable properties.

Using a fixed value like $5,000 is a common practice in real estate appraisal, as this reflects a generally accepted market adjustment rather than an arbitrary number. It’s crucial that the appraiser bases their adjustments on local market conditions and established norms for the particular area in which the properties are located.

This standardized method helps provide coherent and comparable valuations between properties, ensuring that the adjustments made are consistent and reflective of market trends.