A subject property is almost identical to a comparable, except that the comparable is older and has an enclosed patio valued at $1,000. Due to its age, the comparable would be considered worth $2,000 less than the subject property. The comparable recently sold for $69,500. What is the adjusted value indicated for the subject property?

Rationale

$70,500 is the adjusted value indicated for the subject property.

To determine the adjusted value of the subject property, we start with the sale price of the comparable property and make necessary adjustments based on differences in their characteristics. The comparable sold for $69,500, but adjustments must be made for its age and the enclosed patio.

A ($68,500) YOUR ANSWER

This value would imply a deduction of $1,000 for the patio and an additional deduction for the age, totaling $2,000. However, starting from the comparable's selling price of $69,500, this adjustment results in a value that is too low, as the proper calculations lead to a higher adjusted value.

B ($69,500) YOUR ANSWER

This choice represents the sale price of the comparable property without any adjustments. Although it correctly reflects the sale price, it fails to account for the age deduction of $2,000 and the patio's addition of $1,000, which are necessary to find the subject property's adjusted value.

C ($70,500) CORRECT

Starting from the comparable's price of $69,500, we add the $1,000 value for the enclosed patio and then add back the $2,000 deduction for the age. Thus, the calculation is $69,500 + $1,000 + $2,000 = $70,500. This option accurately reflects the adjusted value of the subject property.

D ($71,500) YOUR ANSWER

Selecting this value would suggest an additional $1,000 beyond the adjustments made for the patio and age of the comparable. This choice inaccurately represents the adjustments needed, resulting in an inflated value that exceeds the appropriate calculations for the subject property.

Conclusion

The adjusted value of the subject property is derived from the comparable's selling price, incorporating necessary adjustments for differences in value due to age and additional features. After accounting for the $1,000 value of the enclosed patio and the $2,000 deduction for the comparable's age, the correct adjusted value stands at $70,500, reflecting a precise and rational calculation of property value.

$70,500 is the adjusted value indicated for the subject property.

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