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You have been asked to appraise the market value of a three-bedroom house with two bathrooms...

You have been asked to appraise the market value of a three-bedroom house with two bathrooms that is going to be sold tomorrow.

You found a comparison property that sold for $275,000 four weeks ago. It has three bedrooms and three bathrooms.

You estimate that values have been decreasing at a rate of $2,000 per week since the comparison property transacted. Each bedroom is worth $30,000 and a bathroom is worth $15,000 in the respective market.

What is the adjusted price for the subject property?

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Answer #1

In order to arrive at the adjusted price for the subject property, we have to subtract value of one bathroom and reduction which has happened due to passage of time

Attached below is the final solution and formulas used :-

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