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.

   Which sales should be adjusted for market conditions?

   	1.	Comparables 1 and 2.
   	2.	Comparables 2 and 3.
   	3.	Comparables 1 and 3.
   	4.	None of the comparables.