Question

A comparable sold six months ago for $40,000. It was 10% superior to the subject with respect to location, 15% inferior to the subject with respect to frontage and shape. The market condition was 10% per year. What is the adjusted sales price of this comparable.

Answer 1

A comparable sold six months ago at $40000

Market condition = 10% per year i.e 5% for 6 month

A comparable value now =  $40000 * (1+5%) = 42000

The superior location of the comparable requires a downward adjustment to its sale price, while its frontage and shape inferiority requires an upward adjustment. The net adjustment to the comparable is an upward adjustment of 5% when the comparable is being compared to the subject. The adjusted sales price of comparable is X.

X= 42000* (1+5%) = 42000* (1+0.05)

X = 42000 * 1.05

X = $44100