You are trying to estimate the value of a 2,000 property with a traditional design in a new suburb. The property has 3 bedrooms, 3 bathrooms, and a 2 -car garage. The property is located an a interior lot with good drainage and above-average construction quality. Three properties have been chosen as comparables and they also were constructed within the past two vears. Comparable properties in the area have the following characteristics: Your research of the housing market for the area has lead you to the followine conclusions: (values summarized in table below) Appreclation in house values over the past year has been $450 each month You believe that properties in the area that are located near the creek sell for about $1,300 less than other properties in the area because of flooding problems. Each additional 100 square feet adds roughly $105 to the price. Properties on corner lots generally sell for a premium of about $1,100 above interior lots: Houkes with the fashichable modern design usual-y bring about $1,100 more than those that have traditional design characteristics. Three-bedroom, two-buthroom homes are considered standard by buyers in the area. Additional bedrooms generally add about $3,000 in value to a property. b. Use the cost approach to estimate value. Comparing vacant lot sales in the market area indicates that the value of the lot the subject property is constructed on is $15,500. Air-conditioned space in the dwelling would cost about $126 per square foot to reproduce, and the garage would cost approximately $3,950to reproduce. Complete the cost approach to value, assuming that, because the property being valued is relatively new, no depreciation of the structure is required. SOLUTION: PART B - Answer is roughly $271,000 You are trying to estimate the value of a 2,000 property with a traditional design in a new suburb. The property has 3 bedrooms, 3 bathrooms, and a 2 -car garage. The property is located an a interior lot with good drainage and above-average construction quality. Three properties have been chosen as comparables and they also were constructed within the past two vears. Comparable properties in the area have the following characteristics: Your research of the housing market for the area has lead you to the followine conclusions: (values summarized in table below) Appreclation in house values over the past year has been $450 each month You believe that properties in the area that are located near the creek sell for about $1,300 less than other properties in the area because of flooding problems. Each additional 100 square feet adds roughly $105 to the price. Properties on corner lots generally sell for a premium of about $1,100 above interior lots: Houkes with the fashichable modern design usual-y bring about $1,100 more than those that have traditional design characteristics. Three-bedroom, two-buthroom homes are considered standard by buyers in the area. Additional bedrooms generally add about $3,000 in value to a property. Three-bedroom, two-bathroom homes are considered standard by buyers in the area. Additional bedrooms generally add about $3,000 in value to a property. Similarly, additional full bathrooms increase the price $2,100, and haif baths by half that amount. Fewer bedrooms and bathrooris than normal reduce value by the same amount Two-car garage is standard, and a one-car garage reduces value by $900, and a two-car open carpcrt by $1,000. Inferior construction quality will reduce its value by about $1,600, while above average quality will increase it ty $1,000. a. Complete the sales comparison approsch to value and assign an estimste of value to the subject property. Be sure to link your cells to the numbers given in the spreadsheet. Three-bedroom, two-bathroom homes are considered standard by buyers in the area. Additional bedrooms generally add about $3,000 in value to a property. Similarly, additional full bathrooms increase the price $2,100, and haif baths by half that amount. Fewer bedrooms and bathrooris than normal reduce value by the same amount Two-car garage is standard, and a one-car garage reduces value by $900, and a two-car open carpcrt by $1,000. Inferior construction quality will reduce its value by about $1,600, while above average quality will increase it ty $1,000. a. Complete the sales comparison approsch to value and assign an estimste of value to the subject property. Be sure to link your cells to the numbers given in the spreadsheet. Answer for Property 2 is roughly \$. This is what we expect to pay (approximately) each month we hold the property. Answer for Property 3 is roughly S. This is what we expect to pay (approximately) each month we hold the property. - Answer for Property 2 is roughly $5,000. Answer for Property 3 is roughly $198,000. Answer for Property 2 is roughly \$. This is what we expect to pay (approximately) each month we hold the property. Answer for Property 3 is roughly S. This is what we expect to pay (approximately) each month we hold the property. - Answer for Property 2 is roughly $5,000. Answer for Property 3 is roughly $198,000. Answer for Property 2 is roaghy 5. This is what we enpect to o. Anwer for Gropecty 3 is rougNy 5. This is what we enpect to i Answet for Property 2 is feughly 55,000. Anwwer for Progetty 3 is rougfly $194000 Answer for Property 2 is roaghy 5. This is what we enpect to o. Anwer for Gropecty 3 is rougNy 5. This is what we enpect to i Answet for Property 2 is feughly 55,000. Anwwer for Progetty 3 is rougfly $194000