The market supports $75.00 per square foot for differences in gross living area. A comparable containing 2,000 square feet sold for $290,000; the subject contains 2,100 square feet. What is the comparable’s adjusted price?
Correct Answer
A) $297,500
Why this is correct: the subject is 100 square feet larger, so the comparable is inferior and is adjusted upward. Calculation: 100 × $75.00 = $7,500; $290,000 + $7,500 = $297,500. Why the other choices are wrong: $282,500 adjusts downward, treating the smaller comparable as though it were the superior property; $304,500 applies the overall rate of $145 per square foot rather than the paired-sales rate; $290,000 leaves the size difference unadjusted.
Why This Is the Correct Answer
Why this is correct: the subject is 100 square feet larger, so the comparable is inferior and is adjusted upward. Calculation: 100 × $75.00 = $7,500; $290,000 + $7,500 = $297,500. Why the other choices are wrong: $282,500 adjusts downward, treating the smaller comparable as though it were the superior property; $304,500 applies the overall rate of $145 per square foot rather than the paired-sales rate; $290,000 leaves the size difference unadjusted.
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An appraiser is valuing a property where a comparable sale occurred 8 months ago for $275,000. Market conditions have been appreciating at 0.5% per month. What time-adjusted price should be used for the comparable?
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