Favorable Mortgage Financing May Have a Significant Impact on the Transaction

Multiple Choice

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)

A) The transaction price of the comparable property should be adjusted downward.
B) The transaction price of the comparable property should be adjusted upward.
C) The transaction price of the comparable property should not be adjusted.
D) There is no way to estimate the price of the subject property.