A comparable sale price is adjusted upward by 5%, and the resulting adjusted price is then adjusted upward by 4%. What is the total percentage increase from the original sale price?
Correct Answer
B) 9.2%
((1.05×1.04)−1)×100=9.2. Common errors: adding the percentages instead of compounding them gives 9.0%; multiplying the percentages gives 20.0%; reporting the combined factor instead of the increase gives 109.2%.
Why This Is the Correct Answer
((1.05×1.04)−1)×100=9.2. Common errors: adding the percentages instead of compounding them gives 9.0%; multiplying the percentages gives 20.0%; reporting the combined factor instead of the increase gives 109.2%.
More Sales Comparison Questions
Supported adjustments are: non-market financing $10,000, GLA $36/sf, garage $3,500 per car, pool/spa $12,500. A comparable identical to the 2,800 sf subject sold for $267,000 with non-market financing. What is its adjusted price?
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Previous Question
A comparable listed at $389,900 and sold for $374,000. It is 200 square feet smaller than the subject, and paired sales support a +$12,000 adjustment for the difference, giving an adjusted price of $386,000. Its one remaining difference is location: it fronts a busy collector street, while the subject is on a quiet cul-de-sac. No market data measure this location effect. What does this comparable indicate about the subject's value?
Next Question
A comparable’s cash price is $400,000. Market data indicate a total time increase of 5%, and a −$15,000 garage adjustment is stated in effective-date dollars. What is the adjusted price?