Valuation
Direction of Adjustments
A concise definition for the California Real Estate Exam study guide.
Definition
If the comparable is SUPERIOR to the subject in some way, subtract from the comparable's price. If the comparable is INFERIOR, add to it. The goal is to bring the comparable to parity with the subject.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 6: Valuation & Appraisal →