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?
Correct Answer
A) Add $64,000 to reflect current market conditions
When using sales comparison, adjustments must be made for market movement between the sale date and valuation date. An 8% increase means adding $64,000 ($800,000 × 0.08) to reflect current market value.
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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?
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A residential property sold for $800,000 six months ago. Since then, the local market has experienced 4% growth. What adjustment should be made to use this sale as a comparable for current valuation purposes?