You have been asked to appraise a 2,950 sq ft single-family residence in a 15-year old subdivision of
similar good-quality homes. The subject home is ten years old which is normal for this subdivision,
and it is in good condition. It has central heating and cooling, as done all the homes in this subdivision.
It has two fireplaces and an attached three-car garage.

You have found five comparable homes nearby, and all are in the same subdivision as the subject.
Unless it is mentioned, all comparables are the same quality and condition as the subject and have the
same amenities (items like fireplaces and garage spaces).

• Sale no. 1 sold three months ago for $445,000; is 350 sq ft smaller than the subject, was built eight
years ago, has only one fireplace, and has a swimming pool. It is in Average condition, which you
estimate has reduced its value by $15,000 when compared to the subject.

• Sale no. 2 sold ½ year ago for $456,250. Based on other comparable sales, you know values have
increased one percent in the past ½ year - say $4,560. This is a 3,100 sq ft D7½ house that was built
12 years ago; like sale no. 1, it has one fireplace. It has a four-car garage.

• Sale no. 3 sold two months ago for $439,900; the seller knew he would have to pay 1-point - about
$4,400 - so the buyer could obtain a Cal Vet loan. The owner kept the selling price higher in order to
cover this extra cost. This house is 100 sq ft smaller than the subject and was built 11 years ago. It is in
Average condition, which you estimate has reduced its value by $15,000.

• Sale no. 4 sold last month for $509,500. This is a 3,125 sq ft D8½ house that was built 13 years ago;
like sale no. 2, it has a four-car garage; like sale no. 1, it has a swimming pool.

• Sale no. 5 sold seven months ago for $460,500; as in Sale no. 2, you feel an upward time adjustment
of one percent - say, $4,600 is appropriate. The seller helped finance the property with a second deed
of trust, which was discounted by $6,000 when he sold it to a third party. This house is 75 sq ft smaller
than the subject, was built nine years ago, and is in excellent condition, which you estimate has
increased its value by $20,000 compared to the subject.

You determined that the subject home and three of the comparables have a quality classification of
D8; from other comparables you have determined that a ½-class difference in quality will reflect a
$20,000 difference in value. Also, for homes ranging from 2,500 to 3,250 square feet in size, the value
difference for area is about $100 per square foot. Age does not have a big effect on price - about
$5,000 for a two-year difference from the norm; homes that are 13 to 15 years old will sell for $7,500
less than then the typical ten-year old home.

In this subdivision you have done an analysis of the value attributable to swimming pools; although
they typically cost $30,000 to $60,000, they only add $20,000 to the value of a home. From
comparable sales you have also determined that a home with a four-car garage will sell for $8,000
more than a home with a three-car garage, and a home with two fireplaces will sell for $2,000 more
than a home with only one fireplace.

Using the data provided, fill in the Sales Problem Grid that is included below.

Calculate the adjustments for the comparable sales.

Analyze the data from the comparable.

List a range of value, and the value you select for the subject property. Briefly explain your reasoning.