You are trying to estimate the value of a property that you are interested in buying. The subject property is located at 322 Rock Creek Road in a new suburb of a large metropolitan area. The property is like many others in the area, with three bedrooms, two baths, a living room, a den, a large kitchen, and a two-car garage. The residence has about 1,800 square feet of air-conditioned space and is of traditional design. The property is located on an interior lot with no potential flooding problems. The quality of construction appears to be about average for the market area. The property being purchased was built within the past two years. Three properties have been chosen as comparables and they also were constructed within the past two years. Comparable properties in the area have the following characteristics: Address Sale price Time of sale Design Comparable I 123 Clay Street $ 85,000 6 months ago Modern 2-car garage Corner lot Parking Location Drainage Good Bedrooms Baths Four Construction Two Average Comparable II 301 Cherry Lane $ 79,000 Traditional Comparable Ill 119 Avenue X $ 75,000 13 months ago Traditional 1-car garage Interior lot months ago 2-car carport Interior lot Below average Three Two Average Good Two Two Below average You have come to some conclusions concerning what you believe the different attributes of the comparable properties are likely to be worth in the market area. Appreciation in house values in the area has been very low over the past eight months, and you think that any properties that have sold within that period would probably not require any adjustments for the time of sale. However, one of the comparable properties sold over a year ago, and you think it will require a $1,500 upward adjustment. You also believe that properties in the area that are located near the creek sell for about $1,200 less than other properties in the area because of a slower rate of runoff after heavy rains. Properties on corner lots generally sell for a premium of about $1,000. Houses with the fashionable modern design usually bring about $1,000 more than those that have traditional design characteristics. Because three-bedroom homes are considered desirable by buyers in the area, an additional fourth bedroom will generally only add about $1,200 in value to a property. However, properties that contain only two bedrooms are rather difficult to sell, and often bring $2,000 less than their three-bedroom counterparts when they are sold. Most homes in the area have a two-car garage, but when properties have a one-car garage, they usually sell for about $800 less. A two-car open carport generally reduces the value of the property by a similar amount, or $800. The inferior construction quality exhibited by comparable III should reduce its value by about $1,500. Required: a. Complete the sales comparison approach to value and assign an estimate of value to the subject property. b. A second approach using the cost method of valuation will also be used 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 $13,000. Air-conditioned space in the dwelling would cost about $36.00 per square foot to reproduce, and the garage would cost approximately $3,700 to reproduce. Complete the cost approach to value, assuming that, because the property being valued is relatively new, no depreciation of the structure is required. Complete this question by entering your answers in the tabs below. Required A Required B Complete the sales comparison approach to value and assign an estimate of value to the subject property. (Negative amounts should be shown with a minus sign.) Address Sale price Value Adjustments Time of sale Location Site Design Construction quality Number of bedrooms Baths Garage Total adjustment Indicated value Property #1 123 Clay street Property #2 301 Cherry street Property #3 119 Avenue X 0 0 0 0 0 0 Required A Required B A second approach using the cost method of valuation will also be used 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 $13,000. Air-conditioned space in the dwelling would cost about $36.00 per square foot to reproduce, and the garage would cost approximately $3,700 to reproduce. Complete the cost approach to value, assuming that, because the property being valued is relatively new, no depreciation of the structure is required. Estimated reproduction cost of the dwelling: Estimated reproduction cost of the garage Estimated land value Estimated value using the cost approach $ 0 < Required A Required B > Show less