Rosa is preparing the sales comparison grid for a 1,900-square-foot subject property with no deck. Comparable Sale 1 sold for $412,000, has 2,000 square feet, and has a deck. Market data support a $40-per-square-foot adjustment for gross living area and an $8,000 adjustment for a deck. What is the comparable’s adjusted sale price?
Correct Answer
D) $400,000
Step 1: Gross living area difference = 2,000 - 1,900 = 100 square feet. Step 2: GLA adjustment = 100 × $40 = $4,000. Step 3: The comparable is superior because it has more living area and a deck, so both adjustments are subtracted. Step 4: Total downward adjustment = $4,000 + $8,000 = $12,000. Step 5: Adjusted sale price = $412,000 - $12,000 = $400,000.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
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.
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A subject property does not have a finished basement. A comparable sale closed at $420,000 and does have a finished basement. Market evidence shows buyers in that neighborhood pay about $18,000 more for a finished basement. What adjustment should the appraiser make to the comparable?
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