A comparable property sold recently for $150,000. The adjustments for the various elements of comparison have been calculated as follows:

Location: -1% Market Conditions: +3% Physical Characteristics: +$12,500 Financing Terms: -$2,000 Conditions of Sale: none Property Rights Conveyed: none Use: none Non-Realty Components: -$3,000

Making adjustments in the order found in Exhibit 7-6 in the textbook, what is the final adjusted sale price of the comparable?

hint: the order of adjustments matters!

Your Answer:

Show how you made adjustments to get the final adjusted sale price of the comparable. Make sure to explain this with words and numbers and show/explain:

1. were the items already in the correct order? If not, what is the correct order of adjustments?

2. what is the dollar amount of each adjustment?

Calculate the comparable adjusted price Transaction Price $150,000 Financing Terms -$2600 Normal Sales Price $147,400 Market Conditions + 8% $11,792 Market Adjusted Sales Price $159,192 Location -5% -$7.960 $151,232 Physical Characteristics + $12,500 $163,732 Non Realty items -$3,000 Comparable Adjusted Price $160,732 Calculate the comparable adjusted price Transaction Price $150,000 Financing Terms -$2600 Normal Sales Price $147,400 Market Conditions + 8% $11,792 Market Adjusted Sales Price $159,192 Location -5% -$7.960 $151,232 Physical Characteristics + $12,500 $163,732 Non Realty items -$3,000 Comparable Adjusted Price $160,732