Question

A comparable property sold recently for $150,000. The adjustments for the various elements of comparison have been calculated as follows:

Location: -1%
Market Conditions: +3%
Physical Characteristics: +$12,500
Financing Terms: -$2,000
Conditions of Sale: none
Property Rights Conveyed: none
Use: none
Non-Realty Components: -$3,000

Making adjustments in the order found in Exhibit 7-6 in the textbook, what is the final adjusted sale price of the comparable?

hint: the order of adjustments matters!

Answer 1

	Particulars	Formula	Amount
A.	Transaction Price	Given	$ 150,000.00
B.	Less: Adjustment for Financing Terms	Given	$     2,000.00
C.	Adjusted Price	A-B	$ 148,000.00
D.	Add: Adjustment for Market Conditions @ 3%	Adjusted Price at C*3%	$     4,440.00
E.	Adjusted Price	C+D	$ 152,440.00
F.	Less: Adjustment for Location @ -1%	Adjusted Price at E*1%	$     1,524.40
G.	Adjusted Price	E-F	$ 150,915.60
H.	Add: Adjustment for Physical Characteristics	Given	$   12,500.00
I.	Adjusted Price	G+H	$ 163,415.60
J.	Less: Adjustment for nonrealty items	Given	$     3,000.00
K.	Final Adjusted Sale Price	I-J	$ 160,415.60