Favorable mortgage financing may have a significant impact on the transaction price of the particular property.If the comparable property was known to have had favorable financing terms negotiated into the transaction price,which of the following adjustments should take place? (Note: Assume that the comparable property cannot be dropped from the analysis as there are already limited comparable sales transactions)

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If a comparable property had favorable financing terms negotiated into the transaction price, it would mean that the transaction price of the comparable property was inflated. Therefore, to make an apples-to-apples comparison, the transaction price of the comparable property should be adjusted downward. This adjustment would help to reflect what the transaction price of the comparable property would have been if it had not had favorable financing terms negotiated into the price, thereby making it a more accurate comparable.

Favorable Mortgage Financing May Have a Significant Impact on the Transaction