When appraising a property for a lender, how should adjustments be handled if the subject property is older and has a pool compared to a newer, no-pool comparable?

In the context of appraising a property, adjustments must reflect the differences between the subject property and the comparable properties to ensure a fair market value assessment. When the subject property is older and has a pool, and the comparable property is newer and does not have a pool, the adjustments will help balance the inequities between the two properties.

Adjusting the comparable property down for age makes sense because the subject property, being older, may have less value than a newer comparable. Newer properties typically require less maintenance and may have more modern amenities, thereby justifying a higher value for the comparable.

Conversely, the comparable property should be adjusted up for the absence of a pool. A pool can significantly enhance a property’s value and desirability, especially in regions where they are considered a desirable feature. Hence, without a pool in the comparable, this property may be valued lower, thus necessitating an upward adjustment to bring its value in line with the subject property that has a pool.

By adjusting the comparable property down for age and up for the lack of a pool, a more accurate and equitable valuation is achieved, reflecting the true market value of the subject property.