Real estate investment

As an example, suppose that the subject property is a 20-unit apartment complex. Three recent sales of comparable properties have been discovered and the data has been verified with sellers and buyers. The three areas are as follows:

Comparable Sales Price Units Potential Gross Income

#1 $600,000 25 $100,000

#2 $750,000 30 $128,000

#3 $450,000 18 $74,000

PGI of Subject (Potential Gross Income)=$82,000

Comparable #1 offers amerities and location nearest to the subject property but has superior landscaping estimated to be worth $5,000 more than subject. Its swimming pool is comparable to the subject's, judged to be valued at $16,000. It sold three months ago.

Comparable #2 also has a swimming pool; it sold six months ago with favorable seller financing judged to add $15,000 to the price that would have been had typical financing been employed.

Comparable #3 is two blocks from a bus stop, whereas the subject is eight blocks from the stop. Each block from the bus stop is judged to detract $3,000 from value. It sold two days ago. It does not have a pool.

Price have been rising by 0.5% per month for the type of property in the local market.

Question: Develop an estimate of market value of the subject property (Vs= Units x adjusted SP/unit) ( where Units are 20)

Hints: build grid with appraisal adjustments on feature SP, TOS, Pool, Land, Fin, Location that come up to Adjusted SP/unit

Where TOS are time of sales(Price rising by 0.5% per month and affect its respective adjusted SP) and FIN are financing