Five comparables are ranked by overall desirability. The subject falls between the second and third ranked, which sold at $322,000 and $314,000. What does ranking analysis indicate?
Correct Answer
A) Between $314,000 and $322,000
Why this is correct: ranking places the subject in an interval, and the two sales it falls between define that interval. Why the other choices are wrong: the midpoint asserts a precision the ranking never established, since the subject may sit anywhere between the two; taking the upper sale ignores that the subject ranked below it; and below $314,000 contradicts the subject outranking the third comparable.
Why This Is the Correct Answer
Why this is correct: ranking places the subject in an interval, and the two sales it falls between define that interval. Why the other choices are wrong: the midpoint asserts a precision the ranking never established, since the subject may sit anywhere between the two; taking the upper sale ignores that the subject ranked below it; and below $314,000 contradicts the subject outranking the third comparable.
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A property has a Gross Rent Multiplier (GRM) of 120. If the monthly rent is $3,500, what is the indicated value?
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The subject contains 1,900 square feet. The three comparables contain 1,700, 1,780 and 1,840 square feet, and gross living area is supported at $70 per square foot. What is the concern?