A comparable containing 1,850 square feet with 2.0 bathrooms sold for $272,000. The subject contains 1,950 square feet with 2.5 bathrooms. Gross living area is supported at $68 per square foot and a half bath at $4,500. What is the adjusted price?
Correct Answer
A) $283,300
Why this is correct: the comparable is inferior in both respects, so both adjustments are upward. Calculation: (100 × $68) + $4,500 = $11,300; $272,000 + $11,300 = $283,300. Why the other choices are wrong: $260,700 deducts both adjustments from the inferior property; $278,800 makes only the size adjustment and $276,500 only the bathroom adjustment.
Why This Is the Correct Answer
Why this is correct: the comparable is inferior in both respects, so both adjustments are upward. Calculation: (100 × $68) + $4,500 = $11,300; $272,000 + $11,300 = $283,300. Why the other choices are wrong: $260,700 deducts both adjustments from the inferior property; $278,800 makes only the size adjustment and $276,500 only the bathroom adjustment.
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Previous Question
Land in this market is supported at $6.00 per square foot of lot area. A comparable on an 8,000 square foot lot sold for $310,000; the subject sits on 9,000 square feet. What is the comparable’s adjusted price?
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A comparable sold for $286,000. The subject has 150 more square feet of gross living area, worth $70 per square foot, and 2,000 fewer square feet of lot, worth $5 per square foot. What is the adjusted price?