Question
Armando Appraisal is attempting to determine the current market value of a residential property assuming fee simple ownership.The following table presents information on the subject
Armando Appraisal is attempting to determine the current market value of a residential property assuming fee simple ownership.The following table presents information on the subject property and several recent (fee simple) transactions.If the subject property was sold today, the amount of personal property such as furniture and appliances that would be included would be $10,000. Also, post-deal expenditures of $20,000 would be required by the purchaser of the subject property. Expenditures in the table refers to post-deal expenditures.
Assume values have increased by 1.8% per month (compounded) over the past year. Assume great access to the park increases value by $74,000 relative to poor access and that good access to the park increases value by $31,000 relative to poor access. Assume higher square footage increases value by $80 per square foot.
Fill in table 2 (one cell for each row - with either an X and a brief explanation or a number). Show your work in the workspace (on following page), which is important, especially for any possible partial credit. Round your answers to the nearest dollar.
Table 1
| Property | Subject | A | B | C | D | E | F | G | H |
| Use | Residence | Residence | Residence | Residence | Office | Residence | Residence | Residence | Residence |
| Square footage | 2,700 | 2,700 | 2,700 | 2,700 | 2,700 | 2,700 | 2,700 | 3,200 | 2,400 |
| Personal property | ? | $10,000 | $10,000 | $10,000 | $10,000 | $25,000 | $10,000 | $0 | $10,000 |
| Access to park | Good | Poor | Good | Good | Good | Good | Great | Good | Good |
| Conditions of sale | ? | Arms length | Not arms length | Arms length | Arms length | Arms length | Arms length | Arms length | Arms length |
| Financing terms | ? | At market | At market | At market | At market | At market | At market | Above market | At market |
| Expenditures | ? | $20,000 | $20,000 | $30,000 | $20,000 | $20,000 | $5,000 | $20,000 | $20,000 |
| Transaction date | ? | Today | 8 months ago | Today | Today | 5 months ago | Today | 4 months ago | 2 months ago |
| Sales price | ? | $640,000 | $480,000 | $570,000 | $670,000 | $660,000 | $790,000 | $570,000 | $630,000 |
Table 2
| Property | Put an X in the box if the property should be excluded from a sales comparative approach to valuing the subject property. Briefly explain why the property should be excluded. | Write the final adjusted value for each property that should be included in a sales comparison after taking all relevant adjustments into account |
| A | ||
| B | ||
| C | ||
| D | ||
| E | ||
| F | ||
| G | ||
| H |
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