A property has 3 bedrooms, while a comparable has 4. If an additional bedroom is valued at $12,000, what adjustment is needed?

To determine the necessary adjustment when comparing two properties with different numbers of bedrooms, it's important to understand the principle of making the properties as comparable as possible. In this scenario, one property has three bedrooms while the other has four, and the additional bedroom is valued at $12,000.

When the comparable property has more features than the subject property—in this case, an extra bedroom—it’s essential to adjust the value of the comparable property downward to accurately reflect the differences in features. Thus, you would subtract the value assigned to that additional bedroom from the comparable property. This adjustment aligns the comparable property more closely with the subject property, allowing for a fair comparison based on features and market value.

In summary, to account for the additional bedroom and make fair comparisons between the properties, the correct procedure is to reduce the comparable's value by $12,000, effectively recognizing that it is more valuable due to the extra bedroom.