A California appraiser is valuing a property in Irvine. Comparable #1 sold for $950,000 three months ago. The California market in this area has been appreciating at 0.5% per month. The comparable is NOT in a Mello-Roos district, but the subject IS in a Mello-Roos district paying $4,800 per year in special taxes. The appraiser determines that the present value of the Mello-Roos tax burden reduces value by $48,000. What is the time-and-Mello-Roos adjusted value of Comparable #1?
Correct Answer
A) $916,250
Step 1: Time adjustment = $950,000 × (0.5% × 3 months) = $950,000 × 1.5% = $14,250 upward. Time-adjusted value = $950,000 + $14,250 = $964,250. Step 2: Mello-Roos adjustment = -$48,000 (comparable has no Mello-Roos, subject does, so adjust comparable downward). Step 3: Final adjusted value = $964,250 - $48,000 = $916,250.
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Previous 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?
Next Question
A California real estate agent is preparing a CMA in San Jose. The subject property is a 4-bedroom, 2-bath home with 2,200 sq ft. A comparable property sold for $1,100,000 and has 4 bedrooms, 3 baths, and 2,200 sq ft. In this Silicon Valley market, each bathroom is valued at $15,000. The comparable also has solar panels worth $12,000 that the subject lacks. What is the adjusted value of the comparable?