You're doing a CMA on a four-bed, two-bath property. Comp A has three beds, two-and-a-half baths, and sold for $325,000. Comp B has three beds, three-and-a-half baths, and sold for $335,000. Given this, what is the value of a full bathroom in this area?

Rationale

The value of a full bathroom in this area is $10,000.

In this scenario, the difference in value between two comparable properties can be attributed to the additional full bathrooms, allowing us to determine the market value of a full bathroom. By analyzing the sales prices of the comparable properties and their respective bathroom counts, we find that each full bathroom adds approximately $10,000 to the property's value.

A ($20,000) YOUR ANSWER

This choice suggests that a full bathroom adds an excessive amount to property value. While bathrooms do increase value, the analysis of the two comps indicates a much lower incremental value, as evidenced by the differences in sale prices and bathroom counts.

B ($5,000) YOUR ANSWER

This amount is too low for the value of a full bathroom based on the provided data. The differences in sale prices between Comp A and Comp B, which involve varying numbers of bathrooms, suggest that the incremental value is higher than this figure.

C ($15,000) YOUR ANSWER

While this figure is closer to a reasonable estimate, it still does not accurately reflect the calculated value based on the comps. The analysis indicates that the full bathroom's contribution to the property value is less than this amount, as demonstrated by the price differences.

D ($10,000) CORRECT

This choice reflects the correct valuation derived from the comparison of the two properties. Comp A and Comp B show a price difference of $10,000 attributable to the additional half bathroom in Comp B. Thus, the value of a full bathroom in this area is effectively confirmed to be $10,000.

Conclusion

Determining the value of a full bathroom in a property requires careful comparison of similar properties and their sale prices relative to their bathroom counts. In this case, the analysis of Comp A and Comp B indicates that a full bathroom adds approximately $10,000 to the value of a property, making this the correct value in the given market context.

You're doing a CMA on a four-bed, two-bath property. Comp A has three beds, two-and-a-half baths, and sold for $325,000. Comp B has three beds, three-and-a-half baths, and sold for $335,000. Given this, what is the value of a full bathroom in this area?

The value of a full bathroom in this area is $10,000.

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