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30 May, 13:56

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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  1. 30 May, 17:53
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    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
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