If positives total 12 and negatives total 3, and the comparable sale price is 120, what is the net adjustment?

If positives total 12 and negatives total 3, and the comparable sale price is 120, what is the net adjustment?

• A. 0.075 (7.5%)
• B. 0.125 (12.5%)
• C. 0.025 (2.5%)
• D. 0.15 (15%)

Answer: (A)

Net adjustment is the difference between the total positive adjustments and the total negative adjustments, expressed as a percentage of the comparable sale price. Here, positives total 12 and negatives total 3, so the net adjustment amount is 12 − 3 = 9. Converting to a percentage of the comparable price: 9 / 120 = 0.075, which is 7.5%. The other options correspond to using only positives (12/120 = 10%), only negatives (3/120 = 2.5%), or summing both (15/120 = 12.5%), which aren’t what net adjustment represents.

Net adjustment is the difference between the total positive adjustments and the total negative adjustments, expressed as a percentage of the comparable sale price. Here, positives total 12 and negatives total 3, so the net adjustment amount is 12 − 3 = 9. Converting to a percentage of the comparable price: 9 / 120 = 0.075, which is 7.5%. The other options correspond to using only positives (12/120 = 10%), only negatives (3/120 = 2.5%), or summing both (15/120 = 12.5%), which aren’t what net adjustment represents.