1. The subject property is a small commercial building in a small town. It contains 3,500 square feet of gross building area and was constructed 10 years ago. It does not have a finished basement. The lender has agreed to provide a financing package that provides $5,000 in financial benefits. Examination of the market has revealed several sales of competitive properties. Sales price data indicate that the market is steady, increasing at about 5% per year. A market analysis has indicated that a basement adds approximately $15,000 to the value of commercial buildings ranging in size from 2,500 to 5,000 square feet.

   • Comparable 1 has 2,800 square feet of building area. It has a finished basement. It was sold approximately one year ago for $275,000, at financing terms that are typical of the market.
   • Comparable 2 has 3,000 square feet of building area. It does not have a finished basement. It sold one year ago for $280,000 for a financing package similar to that of the subject.
   • Comparable 3 has 3,000 square feet of building area. It has a finished basement. It sold three days ago for $300,000 at terms that are typical in the market.

   What is the correct order of applying adjustments?

   	1.	Basement, financing, market conditions.
   	2.	Market conditions, basement, financing.
   	3.	Order does not matter.
   	4.	Financing, market conditions, basement.