In a comparative market analysis (CMA), adjustments are made to account for differences between the property being evaluated and comparable properties that have sold. A bathroom can significantly affect a property's value; hence, it's common to see adjustments for the presence, absence, or quality of bathrooms.
In this specific situation, a decrease in value for a bathroom may indicate that the property being analyzed either has fewer bathrooms than the comparable properties or the bathrooms are of less value due to condition or configuration. This would lead to a required adjustment reflecting a reduction in the overall market value of the property.
Typically, if the subject property has fewer bathrooms, the adjustment will account for the perceived drop in value, as buyers often prioritize having more bathrooms for convenience and functionality. Hence, a $5,000 decrease as an adjustment suggests that the absence of a bathroom is valued at that amount compared to the properties that have more or better-quality bathrooms.
This type of adjustment is crucial in establishing a fair market value, as it aligns the subject property more closely with the comparable properties used in the analysis.