What is the necessary adjustment should be

Reference no: EM133487289

Case: Your current appraisal assignment involves a four-bedroom, three-bath home in an established neighborhood. Comparable properties with the exception of the house next door have been selling for between $290,000 and $340,000.

(a) Comparable #1 is similar to the subject property except that it only has three bedrooms. If you believe a bedroom is worth $35,000, then what is the necessary adjustment should be?

(b) Comparable #2 was built by the same builder as the subject property and is very similar to it except that it sold six months ago for $300,000 in a very active market where values are increasing 10% annually. What is a proper time adjustment?

(c) If similar properties in the neighborhood are selling for between $290,000 and $340,000, and if the subject property appraises within this range of value, then on which basic value principle is used?

(d) If comparable #1 was a transaction between parents and child, then are you still going to use comparable #1 as your comparable property? Why?

Reference no: EM133487289

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