Question
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
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
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