Question

Given the following information, determine the final appraisal value of the subject property. LABEL ALL ADJUSTMENTS AND SHOW YOUR CALCULATIONS.

	Adjustments
Market conditions	-0.30% (per month)
Lot size	$18,000 (per acre)
Effective age (years)	$1,600 (per year)
Living area (sq. ft)	$57.00 (per sq. ft.)
Bath	$1,600 (per bath)
Bedrooms	$2,200 (per bedroom)

	Subject Property	Comparable Property
Time sold	Today	3 months ago
Lot size (acres)	0.93	0.72
Effective age (years)	3	6
Living area (sq. ft)	2,315	2,169
Bath	3.5	2.5
Bedrooms	5	4
Sale price	-	$235,000

Answer 1

Appraisal Value of the Subject Property :-

Step 1 :-

Particulars	Adjustments (A)	(B)	Appraisal Value (A*B)
Lot Size	$18000 per acres	(0.72 - 0.93) = -0.21	($3780)
Effective Age	$1600 per year	(6 - 3) = 3	$4800
Living Area	$57 per sq. ft.	(2169 - 2315) = -146	($8322)
Bath	$1600 per bath	(2.5 - 3.5) = -1	($1600)
Bedrooms	$2200 per bedroom	(4 - 5) = -1	($2200)
Sale Price			$235000
			$223898

Step 2 :- Market Condition = $235000 * (0.03% * 3 month)

= $235000 * 0.09%

= $211.5 or $212

Appraisal Value of the Subject Property = $223898 - $212 = $223686

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