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1. The sales comparison approach is being used to obtain an indication of the market value...

1. The sales comparison approach is being used to obtain an indication of the market value of a single family residence. The subject property is compared to the four properties that sold during the past year in the same neighborhood. Relevant characteristics of the subject and the comparables are presented below.

Subject: current sale, waterfront, 1 car garage, average condition, 2,300 square feet.

Sale 1: sold last week, waterfront, 1 car garage, average condition, 2,600 square feet, for $350,000.

Sale 2: sold last year, waterfront, 1 car garage, average condition, 2,400 square feet, for $300,000.

Sale 3: sold last year, off water, 1 car garage, average condition, 2,200 square feet for $220,000.

Sale 4: sold 3 months ago, off water, 2 car garage, average condition, 2,050 square feet for $280,000.

Analyze the sales on the price per square foot basis and make any adjustments necessary to obtain an indication of value for the subject property. Present your findings in the form of a sales comparison chart, or grid, and explain all adjustments.  

Solutions

Expert Solution

Formula for Price per sq. ft.:

Formula for Inflation Adjustment:

jeff jeffy answered 2 years ago
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