Question
In: Finance
Use the following information to answer questions 44-46 using the sales comparison approach. A comparable property...
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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:
- Location: +4.5 %
- Market conditions: -0.54% per month
- Physical characteristics: + $4,500
- Financing terms: -$3,500
- Nonrealty items: +$5,200
- Conditions of sale, Legal characteristics, Use: 0
What is the value of the market conditions adjustment?*
None of the above
-$14,800
-$8,600
-$1,200
6 points
Question 45
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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
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What is the value of the location adjustment? Answers are rounded to the nearest hundred.
$11,000
+$10,400
-$9,600
+$9,900
Solutions
Expert Solution
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.
jeff jeffy answered 1 year agoRelated Solutions
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