1. 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?

Question

Mercedes Murray

Business

18 December, 18:00

1. 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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Answers (1)

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Ibrahim Hayes · Answer 1

Current price of house = $222,000

Explanation:

given data

property that sold = $275,000

values decreasing at rate = $2,000 per week

Each bedroom = $30,000

a bathroom = $15,000

solution

we get here Price of 3 bedroom & 3 bathroom house (4 weeks ago) is

Price of 3 bedroom & 3 bathroom house (4 weeks ago) = $275,000 - $30,000 - $15,000

Price of 3 bedroom & 3 bathroom house (4 weeks ago) = $230000

and

reduction in price at $2000 per week for 4 weeks = 4 * 2000

reduction in price at $2000 per week for 4 weeks = ($8,000)

so

Current price of house = $230000 - $8,000

Current price of house = $222,000