A comparable sold 8 months ago for $265,000 in a market rising 0.25% per month. It has a garage the subject lacks, worth $9,000, and one fewer bathroom than the subject, worth $4,500. What is the adjusted price?
Correct Answer
C) $265,800
Why this is correct: Calculation: 8 × 0.25% = 2%; $265,000 × 1.02 = $270,300; - $9,000 + $4,500 = $265,800. Why the other choices are wrong: $260,500 applies both physical adjustments and omits market conditions; $270,300 stops after the market adjustment; $256,800 deducts both physical adjustments, though the comparable is inferior on bathroom count.
Why This Is the Correct Answer
Why this is correct: Calculation: 8 × 0.25% = 2%; $265,000 × 1.02 = $270,300; - $9,000 + $4,500 = $265,800. Why the other choices are wrong: $260,500 applies both physical adjustments and omits market conditions; $270,300 stops after the market adjustment; $256,800 deducts both physical adjustments, though the comparable is inferior on bathroom count.
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