A residential property in Melbourne has recently sold for $800,000. A comparable property with similar features but 20% larger floor area sold for $900,000. What is the adjusted value of the comparable property for CMA purposes?
Correct Answer
B) $750,000
The comparable property needs to be adjusted downward for its larger size. $900,000 ÷ 1.20 = $750,000. This adjustment removes the 20% size premium to make it comparable to the subject property.
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A property valuer is assessing a 15-year-old commercial building. The replacement cost new is $2,000,000, land value is $800,000, and total depreciation is estimated at 25%. What is the property value using the summation approach?
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A residential property sold for $800,000 six months ago. An identical property next door is being valued today in a market that has increased by 8%. What adjustment should be made for time?