Two otherwise similar sales suggest that buyers in a market pay about $80 per square foot for additional living area. The subject contains 1,800 square feet. A comparable sold for $460,000 and contains 1,950 square feet, with no other meaningful differences. What is the comparable’s adjusted sale price?
Correct Answer
A) $448,000
Step 1: Living-area difference = 1,950 - 1,800 = 150 square feet. Step 2: Adjustment amount = 150 × $80 = $12,000. Step 3: The comparable is superior because it has more living area than the subject, so the adjustment is downward. Step 4: Adjusted sale price = $460,000 - $12,000 = $448,000.
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