A comparable closed at $288,000 including $6,000 of seller concessions, and requires a +2% market conditions adjustment. Applying the adjustments in the conventional sequence, what is the adjusted price?
Correct Answer
A) $287,640
Why this is correct: financing and concessions are settled before market conditions, so the concession comes off the closing price and the market adjustment applies to what remains. Calculation: $288,000 - $6,000 = $282,000; $282,000 × 1.02 = $287,640. Why the other choices are wrong: $287,760 applies the market adjustment first and so inflates the concession by 2% as well; $293,760 omits the concession; $282,000 stops before the market conditions adjustment.
Why This Is the Correct Answer
Why this is correct: financing and concessions are settled before market conditions, so the concession comes off the closing price and the market adjustment applies to what remains. Calculation: $288,000 - $6,000 = $282,000; $282,000 × 1.02 = $287,640. Why the other choices are wrong: $287,760 applies the market adjustment first and so inflates the concession by 2% as well; $293,760 omits the concession; $282,000 stops before the market conditions adjustment.
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