A comparable sells for $285,000 and has 1,900 sf GLA; subject GLA is 2,050 sf. What is the COMPARABLE’s own price per square foot? No marginal adjustment rate or subject value is established by that quotient.
Correct Answer
C) $150.00
285000÷1900=150. Common errors: dividing by the subject’s GLA instead of the comparable’s gives $139.02; dividing by the GLA difference gives $1,900.00; misplacing the decimal in the GLA gives $15.00.
Why This Is the Correct Answer
Option C is correct because the comparable's own price per square foot is its price divided by its own GLA: $285,000 / 1,900 = $150.00. That quotient is a unit of comparison, not a marginal adjustment rate or a subject value.
Why the Other Options Are Wrong
Option A: $15.00
Option A, $15.00, comes from misplacing the decimal in the GLA, dividing by 19,000: $285,000 / 19,000 = $15.00. The comparable's GLA is 1,900 sf, so $285,000 / 1,900 = $150.00.
Option B: $139.02
Option B, $139.02, divides by the subject's GLA instead of the comparable's: $285,000 / 2,050 = $139.02. The comparable's own unit price uses its own area: $285,000 / 1,900 = $150.00.
Option D: $1,900.00
Option D, $1,900.00, divides by the GLA difference: $285,000 / (2,050 - 1,900) = $285,000 / 150 = $1,900.00. The comparable's unit price is $285,000 / 1,900 = $150.00.
Own Price, Own Area
A property's unit price uses its own sale price divided by its own area, not another property's area.
How to use: Use this to avoid plugging the subject's size into a comparable's unit price.
Exam Tip
Ignore extra facts like the subject's GLA when the question asks for the comparable's own unit price.
Common Mistakes to Avoid
- -Dividing a comparable's price by the subject's GLA
- -Dividing by the area difference instead of the total area
- -Treating the unit price as the marginal adjustment rate
Concept Deep Dive
Analysis
This question tests computing a comparable's own unit price and avoiding the distraction of the subject's area. A comparable's price per square foot uses that comparable's price and that comparable's GLA. The subject's GLA is irrelevant to this quotient.
Background Knowledge
Stating each sale price in appropriate units of comparison lets appraisers compare sales of different sizes. Each unit price must pair a property's own price with its own measured area; mixing properties produces meaningless figures.
Real-World Application
Building a sales grid, an appraiser lists each comparable's sale price per square foot of GLA. For a 1,900 sf comparable that sold for $285,000, the grid shows $150 per square foot.
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