A comparable closed at $310,000 including $4,000 of concessions, sold 10 months ago in a market rising 0.3% per month, and is 120 square feet smaller than the subject at $65 per square foot. What is the adjusted price?
Correct Answer
D) $322,980
Why this is correct: concessions come off first, market conditions apply to what remains, and the physical adjustment is added last in current dollars. Calculation: $310,000 - $4,000 = $306,000; × 1.03 = $315,180; + (120 × $65) = $322,980. Why the other choices are wrong: $323,100 applies market conditions before removing the concession, inflating the concession by 3%; $315,180 stops before the size adjustment; $313,800 omits market conditions entirely.
Why This Is the Correct Answer
Why this is correct: concessions come off first, market conditions apply to what remains, and the physical adjustment is added last in current dollars. Calculation: $310,000 - $4,000 = $306,000; × 1.03 = $315,180; + (120 × $65) = $322,980. Why the other choices are wrong: $323,100 applies market conditions before removing the concession, inflating the concession by 3%; $315,180 stops before the size adjustment; $313,800 omits market conditions entirely.
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