A comparable home with 200 m² of floor area sold for $900,000. The subject home is similar but has 180 m², and local sales analysis shows each extra square metre adds about $2,500. What is the comparable's sale price adjusted to the subject?
Correct Answer
A) $850,000
Adjust the comparable to the subject. The comparable has 20 m² more floor area (200 − 180), worth about $2,500 per square metre on local evidence, so its price is adjusted down by 20 × $2,500 = $50,000: $900,000 − $50,000 = $850,000. Adjustments should come from market evidence for the specific feature, not from scaling the whole price by floor area.
Why This Is the Correct Answer
The comparable is 20 m² larger than the subject. At about $2,500 per square metre, that difference is worth $50,000, so the comparable's price adjusted to the subject is $900,000 − $50,000 = $850,000.
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