6. An office building sold for $950,000 but was listed for $940,000. On review of the contract, you find the seller paid $20,000 towards the buyers closing costs. What is the cash equivalent price? Answer: 7. A mobile home park sold for $850,000. The purchaser gave the seller a note (loan) secured by a deed of trust for $700,000 at 4%; however, market rates for loans at banks were typically 7%. The term of the loan from the seller was 20 years with a balloon payment of $573,466.47 at the end of 5 years. What is the contribution of the financing to the sale price? Answer: 8. Financing adjustments consider a. Sales price of the loan when sold in the secondary market b. What the difference in sale prices of properties sold with financing and those that sold for cash c. What the difference is in sale prices of properties that sold for cash or market rate financing and the ones that sold with special financing that favors the buyer d. Why a buyer obtains a loan from one lender at one interest rate over another lender at a different rate 9. Use the price per square foot of gross building area, the price per square foot of land including building, and the price per front foot of land, and select the best unit of comparison for calculating the subject property's value given the comparable data below. a. Price per sq. ft. of Gross Building Area at $8.71 b. Price per sq. ft. of land at $3.11 c. Price per front foot d. Price per sq. ft. at $2.99