A comparable sold for $320,000 and requires percentage adjustments of +5% for location, -3% for condition and +2% for size. Applied as a single net percentage, what is the adjusted price?
Correct Answer
D) $332,800
Why this is correct: applied as a net percentage the three are summed first. Calculation: +5% - 3% + 2% = +4%; $320,000 × 1.04 = $332,800. Why the other choices are wrong: $332,438 applies the three in sequence, compounding each on the result of the last, which is a different convention and not what was asked; $352,000 sums the percentages without regard to sign; $320,000 leaves the comparable unadjusted.
Why This Is the Correct Answer
Why this is correct: applied as a net percentage the three are summed first. Calculation: +5% - 3% + 2% = +4%; $320,000 × 1.04 = $332,800. Why the other choices are wrong: $332,438 applies the three in sequence, compounding each on the result of the last, which is a different convention and not what was asked; $352,000 sums the percentages without regard to sign; $320,000 leaves the comparable unadjusted.
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A house sold for $300,000 and, with no physical change, resold 24 months later for $336,000. What monthly rate of change does this pair indicate on a simple basis?
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A property generates $120,000 in potential gross income. Vacancy and collection losses are 5%, and operating expenses are $45,000. What is the net operating income?