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?
Correct Answer
D) $1,073,000
Step 1: Bathroom adjustment: Subject has 2 baths, comparable has 3 baths. Comparable has 1 extra bath, so adjust downward: -$15,000. Step 2: Solar panel adjustment: Comparable has solar panels, subject does not. Adjust downward: -$12,000. Step 3: Adjusted value = $1,100,000 - $15,000 - $12,000 = $1,073,000.
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Previous Question
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?
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A California listing agent is preparing a CMA for a home in a neighborhood where Proposition 13 has resulted in wide variations in property tax bills among similar homes. A buyer asks whether the property tax shown on the listing will be their tax after purchase. What should the agent explain?