QUESTION 4: Romax Realty is appraising a 20 year old two storey detached house with a double car garage on a 50 feet frontage lot. It has three 4 piece and one 2 piece bathrooms. It has unfinished basement. It has central air- conditioning, which adds $6,000 to its value. It has a brand new gas fireplace, which cost $5000. Its kitchen is functionally obsolete and need to be replaced. It has brand new roof. It has a pie shaped premium lot backing ravine. In analyzing the M.L.S. statistics for this area the following average house prices were obtained: 1 month ago $533,000 3 months ago $528,000 4 months ago $525,000 6 months ago $520,000 Using the following comparable sales, determine the market value of the subject property: Sale #1 On a 40' frontage lot with a double car garage sold just yesterday for $650,000. Lots in the area cost $5000 per front foot. Its condition, location and design are the same as the subject property. It has a brand new kitchen and a finished basement which cost $20,000 and $30,000 respectively. It has a double car garage and three 4 piece and one 2 piece bathrooms. It does have fireplace and air-conditioning. Its roof was just replaced at a cost of $10,000. Sale #2 Sold 6 month ago for $710,000. It backs on to the ravine, requiring an adjustment of $60,000. The house is on a 45 feet frontage lot with a brand new kitchen. It has a fireplace, double car garage and a new roof. It does not have air-conditioning and the basement is unfinished. It also has three 4 piece and one 2 piece bathrooms. Its condition and design are superior to the subject property requiring an adjustment of $30,000. Sale #3 This house is on a 50 feet frontage lot. It was sold 3 months ago for $730,000. Its condition is superior to the subject property requiring an adjustment of $15,000. Its location and design are similar to the subject property. It has air-conditioning but no fireplace. It has a double car garage and the finished basement. Its roof needs replacement. Its kitchen is functionally obsolete. It has four 4-piece and one 2-piece bathroom. An additional 4-piece bathroom adds $6,000 to the value.