Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are appraising a single-family residence located in Yonkers on Saw Mill River Road. You have identified three very comparable properties to use in determining

image text in transcribed

You are appraising a single-family residence located in Yonkers on Saw Mill River Road. You have identified three very comparable properties to use in determining your estimate of value. The elements of comparison you used to compare and adjust the sale prices of the comparable properties are listed in the market data grid below. The property rights being conveyed in the acquisition of the subject property are fee-simple absolute. Conventional mortgage financing will be used by the purchaser and the acquisition appears to be an arm's length transition. Thus, no adjustments need to be made to the sale prices of the comparable properties for the type of property rights conveyed, financing terms, or conditions of sale. However, the buyer of comparable 3 replaced the roof immediately after purchasing the house for a cost of $12,000. Comparable 1 sold four months ago, while comparables 2 and 3 sold seven months ago. Based on your knowledge of recent price appreciation in this market, you have decided that comparable 2 would sell for 2 percent more if sold today and that comparables 2 and 3 would sell for 4 percent more if sold today. In these neighborhoods, an incremental square foot of lot size or living area is worth about $45 per square foot and $90 per square foot respectively. Each year of effective age reduces the value of properties in this market by about $7,500 per year. You experience suggests that each additional half-bath is worth $2,500; each additional full bath $5,000. Additional garage spaces, wood decks, and pools in these neighborhoods are worth $12,000,$15,000, and $25,000, respectively. No significant non-realty items were included in the comparable transactions. Based on the above discussion of the elements of comparison, complete an adjustment grid for the three comparable properties. What is the final adjusted price (indication of the subject's value) for comparable 1,2 , and 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Im Just A Girl Who Loves Auditing And Coffee

Authors: Michael Happiness

1st Edition

B08HT8643K, 979-8684238604

More Books

Students also viewed these Accounting questions

Question

Explain how Jensens alpha is derived from the CAPM.

Answered: 1 week ago