A California real estate agent is preparing a CMA for a 3-bedroom home in Sacramento. Three comparable sales are identified: Comp A adjusted value $485,000, Comp B adjusted value $492,000, and Comp C adjusted value $478,000. Comp B required the fewest adjustments and is most similar to the subject. Following California appraisal practice, the agent reconciles by weighting Comp B at 50%, Comp A at 30%, and Comp C at 20%. What is the reconciled value estimate?
Correct Answer
A) $487,100
Step 1: Comp A weighted = $485,000 × 0.30 = $145,500. Step 2: Comp B weighted = $492,000 × 0.50 = $246,000. Step 3: Comp C weighted = $478,000 × 0.20 = $95,600. Step 4: Reconciled value = $145,500 + $246,000 + $95,600 = $487,100.
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Previous Question
An appraiser in Orange County, California is adjusting a comparable sale for a CMA. The comparable sold for $820,000 and has 1,800 sq ft. The subject property has 2,100 sq ft. The appraiser determines that the market-derived adjustment is $200 per square foot in this California market. The comparable also has a pool (valued at $25,000) that the subject lacks. What is the adjusted value of the comparable?
Next Question
A licensed appraiser in California is appraising a home in a subdivision where half the homes are within a Mello-Roos Community Facilities District and half are not. The subject property is within the Mello-Roos district and pays $3,200 annually in special taxes. When selecting comparables, which approach is MOST appropriate under California appraisal standards?