A Florida licensee is preparing a CMA for a 3-bedroom home in Orlando. Three comparable sales are: Property A sold for $285,000 (2 bedrooms, +$15,000 adjustment needed), Property B sold for $310,000 (4 bedrooms, -$20,000 adjustment needed), and Property C sold for $295,000 (3 bedrooms, no adjustment needed). What is the indicated market value range the licensee should present?
Correct Answer
B) $290,000 - $300,000
Correct: After adjustments: Property A = $285,000 + $15,000 = $300,000; Property B = $310,000 - $20,000 = $290,000; Property C = $295,000. Range is $290,000-$300,000. Why not A: This uses unadjusted sales prices. Why not C: This excludes the lowest adjusted comparable. Why not D: This excludes the lowest adjusted comparable and uses an incorrect range.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
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Under Florida law, all of the following are requirements for a valid CMA EXCEPT:
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A sales associate in Jacksonville wants to charge $300 for preparing a detailed CMA for a potential seller who is interviewing multiple agents. The seller is not yet committed to listing with any particular agent. What must the sales associate do regarding this fee?