In: Finance
Use the following information to answer questions 44-46 using the sales comparison approach.
A comparable property sold 7 months ago for $231,200. The adjustments for the various elements of comparison have been calculated as follows:
What is the value of the market conditions adjustment?*
None of the above |
||
-$14,800 |
||
-$8,600 |
||
-$1,200 |
6 points
Question 45
What is the value of the market adjusted normal sale price of the comparable?
Answers are rounded to the nearest hundred.
$227,700 |
||
$213,000 |
||
None of the above |
||
$219,100 |
6 points
Question 46
What is the value of the location adjustment? Answers are rounded to the nearest hundred.
$11,000 |
||
+$10,400 |
||
-$9,600 |
||
+$9,900 |
The calculation is shown below done simply on a excel sheet:
Value of property 7 months ago | 231200 | |
Less : Adustment of 0.54% | 1248 | |
Value of Property 6 months ago | 229952 | |
Less : Adustment of 0.54% | 1242 | |
Value of Property 5 months ago | 228710 | |
Less : Adustment of 0.54% | 1235.032822 | |
Value of Property 4 months ago | 227475 | |
Less : Adustment of 0.54% | 1228.363644 | |
Value of Property 3 months ago | 226246 | |
Less : Adustment of 0.54% | 1221.730481 | |
Value of Property 2 months ago | 225025 | |
Less : Adustment of 0.54% | 1215.133136 | |
Value of Property 1 months ago | 223810 | |
Less : Adustment of 0.54% | 1208.571417 | |
Value of Property today | 222601 | |
TOTAL ADJUSTMENT TO THE MARKET | 8600 |
44 ) The market condition adjustment values to -$8600. ( see above) it is calculated by adding all the adjustment shown in the chart for 7 months.
45) As you can see the market adjusted normal sale price of the property should be $222600 , which is not present in the option , so the correct answer would be non of the above.
46) The location adjustment can be simply calcuated as 4.5% of 231200 = +$10400.