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Use the following information to answer questions 44-46 using the sales comparison approach. A comparable property...

  1. 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

  1. 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

  1. 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 2 years ago
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