27) Jane Jones has signed a contract to purchase a home from Blake Blain for $187.000. Jones has applied for a $162.250 mortgage loan from the Bank of Mississippi. The bank requested from you an appraisal of the property using the sales comparison approach. The relevant characteristics, termed "the elements of comparison" used to compare property prices, are summarized in the following exhibit, the market data grid. (10 points) and adjust the Elements of Comparison Sales price of comparable Transaction Characteristics Sale 1 Comp Sale 2 Comp Sale 3 165,900 155 153,000 Property rights conveyed Financing terms Conditions of sale Expenditures inmed. After Fee Simple Conventional Arm's length Market conditions characteristies Memorial Location Same Same Heights Comp Sale 1 Comp Sale 2 Comp Sale 3 Elements of Comparison Physical Characteristics Subject 0.45 acres 0.40 acres Brick 0.50 acres 0.55 acres Sidin 6 years 2.360 sqft 2.5 baths 2-car None None N.A. Single-family None Site/Lot size Siding/Brick 6 years Construction Quality Effective age Living Area Number of Baths Garage Porch. Patio, Deck 2,160 sqft 2,077 sqft | 2,418sdft 3.0 baths 2.5 baths 2-car 200 sq.ft 3.0 baths None 300 sq.ft Pool .. None Pool .. Same None Fence, Pool.etc Economics Characteristics None N.A. se None To adjust the price of each comparable property, use the following adjustment suggested by the appraiser: Nonrealty Components 1. Lot size: $85,000 per acre. 2. Construction quality: No adjustment if all siding. $2,500 adjustment if brick front with remainder siding. $5,000 adjustment if all brick. 3. Effective age: $1,750 per year. 4. Living area: $52.00 per square foot. 5. Location Adjustment: $2,500 (University Heights is a better than Memorial Heights) 6. Porch, patio, deck area: $15.00 per square foot. 7. Pool: $10,000. 8. Bath: $4,000 per bath. 9. 2-car garage: $20,000 10. Market conditions:-0.35% per month. Provide an estimate of the market value using the comparables provided. You must show your work for full credit. Give a minimum, average, (5 points) i) and maximum value Indicated Values: Minimum: Average: Maximum: The reproduction cost estimates are based on information by a private cost estimating firm and data obtained for local building contractors. The living area of the dwelling is estimated at a cost of S55 per sq. ft. The cost of the garage ($9,700) and appliances ($2.400) are added. Depreciation of the total improvements is estimated at a 10%. The appraiser concluded that the property has not suffered functional or external obsolescence. The lot value is a $85,000 per acre. The value of the landscaping and other miscellaneous improvements are e current (with depreciation included) value of $2,000. stimated to have a ii) Provide an estimate of the market value using the cost approach. You must work for full credit. (5 points) Reproduction Cost of Improvement Indicated value cost approach 28) This question relates to the demand for access and the location rent. (show your work) the city of FINESI all employment is at the city center (CBD). In this city there is only one road to the CBD per household and the CBD (including Doctors). There are 424 households. Of those households, 106 are walkers and the rest are workers commuting by car. Workers commuting by car receive an hourly their round-trip travel to the CBD is at 15 mph. Workers walking to the CBD receive an hourly wage of $20 and their walking speed is 4 mph. with residential lots on both sides. Each residential lot is 100 feet wide. There is only one worker households rent lots for motorhomes. Every worker makes 20 round trips per month to $15 and wage rate of S1s (I mile 5,280 feet) Just to be clear, there are workers who walk and workers who drive. What is the time cost of travel for each type of worker and doctors? How much time cost per month is saved by each type of worker? (4 points) Graph the Bid-Rent curve with drivers, walkers and doctors. You must indicate the zone where each type of worker is located, the rents at each break and the rent at the CBD. (5 points) CBD 27) Jane Jones has signed a contract to purchase a home from Blake Blain for $187.000. Jones has applied for a $162.250 mortgage loan from the Bank of Mississippi. The bank requested from you an appraisal of the property using the sales comparison approach. The relevant characteristics, termed "the elements of comparison" used to compare property prices, are summarized in the following exhibit, the market data grid. (10 points) and adjust the Elements of Comparison Sales price of comparable Transaction Characteristics Sale 1 Comp Sale 2 Comp Sale 3 165,900 155 153,000 Property rights conveyed Financing terms Conditions of sale Expenditures inmed. After Fee Simple Conventional Arm's length Market conditions characteristies Memorial Location Same Same Heights Comp Sale 1 Comp Sale 2 Comp Sale 3 Elements of Comparison Physical Characteristics Subject 0.45 acres 0.40 acres Brick 0.50 acres 0.55 acres Sidin 6 years 2.360 sqft 2.5 baths 2-car None None N.A. Single-family None Site/Lot size Siding/Brick 6 years Construction Quality Effective age Living Area Number of Baths Garage Porch. Patio, Deck 2,160 sqft 2,077 sqft | 2,418sdft 3.0 baths 2.5 baths 2-car 200 sq.ft 3.0 baths None 300 sq.ft Pool .. None Pool .. Same None Fence, Pool.etc Economics Characteristics None N.A. se None To adjust the price of each comparable property, use the following adjustment suggested by the appraiser: Nonrealty Components 1. Lot size: $85,000 per acre. 2. Construction quality: No adjustment if all siding. $2,500 adjustment if brick front with remainder siding. $5,000 adjustment if all brick. 3. Effective age: $1,750 per year. 4. Living area: $52.00 per square foot. 5. Location Adjustment: $2,500 (University Heights is a better than Memorial Heights) 6. Porch, patio, deck area: $15.00 per square foot. 7. Pool: $10,000. 8. Bath: $4,000 per bath. 9. 2-car garage: $20,000 10. Market conditions:-0.35% per month. Provide an estimate of the market value using the comparables provided. You must show your work for full credit. Give a minimum, average, (5 points) i) and maximum value Indicated Values: Minimum: Average: Maximum: The reproduction cost estimates are based on information by a private cost estimating firm and data obtained for local building contractors. The living area of the dwelling is estimated at a cost of S55 per sq. ft. The cost of the garage ($9,700) and appliances ($2.400) are added. Depreciation of the total improvements is estimated at a 10%. The appraiser concluded that the property has not suffered functional or external obsolescence. The lot value is a $85,000 per acre. The value of the landscaping and other miscellaneous improvements are e current (with depreciation included) value of $2,000. stimated to have a ii) Provide an estimate of the market value using the cost approach. You must work for full credit. (5 points) Reproduction Cost of Improvement Indicated value cost approach 28) This question relates to the demand for access and the location rent. (show your work) the city of FINESI all employment is at the city center (CBD). In this city there is only one road to the CBD per household and the CBD (including Doctors). There are 424 households. Of those households, 106 are walkers and the rest are workers commuting by car. Workers commuting by car receive an hourly their round-trip travel to the CBD is at 15 mph. Workers walking to the CBD receive an hourly wage of $20 and their walking speed is 4 mph. with residential lots on both sides. Each residential lot is 100 feet wide. There is only one worker households rent lots for motorhomes. Every worker makes 20 round trips per month to $15 and wage rate of S1s (I mile 5,280 feet) Just to be clear, there are workers who walk and workers who drive. What is the time cost of travel for each type of worker and doctors? How much time cost per month is saved by each type of worker? (4 points) Graph the Bid-Rent curve with drivers, walkers and doctors. You must indicate the zone where each type of worker is located, the rents at each break and the rent at the CBD. (5 points) CBD