A comparable with a water view sold for $478,000 and an otherwise identical comparable without one sold for $412,000. Expressed as a percentage of the property lacking the view, what adjustment does the pair indicate?
Correct Answer
B) 16.0%
Why this is correct: a percentage adjustment is measured against the property being adjusted upward, which is the one without the view. Calculation: ($478,000 - $412,000) ÷ $412,000 = 16.0%. Why the other choices are wrong: 13.8% divides by the superior property’s price, which understates what the view adds to a property that lacks it; 86.2% is the ratio of the two prices rather than the difference between them; 16.5% follows from neither denominator.
Why This Is the Correct Answer
Why this is correct: a percentage adjustment is measured against the property being adjusted upward, which is the one without the view. Calculation: ($478,000 - $412,000) ÷ $412,000 = 16.0%. Why the other choices are wrong: 13.8% divides by the superior property’s price, which understates what the view adds to a property that lacks it; 86.2% is the ratio of the two prices rather than the difference between them; 16.5% follows from neither denominator.
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A comparable sold for $325,000 with below-market seller financing whose benefit to the buyer is measured at $12,000. What is the cash-equivalent price?
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A house sold for $240,000 in January and, unchanged, resold for $252,000 the following January. A comparable to the subject sold six months ago for $310,000. Using the rate the resale pair indicates, what is that comparable’s time-adjusted price?