Question

A comparable property recently sold for $315,000. Compared with the subject property, the comparable is built of superior materials ($20,000), and the comparable has more square footage ($25,000). What is the adjusted sale price of the comparable?
A) $290,000
B) $270,000
C) $360,000
D) $295,000

Answer 1

Answer:

The adjusted sale price of the comparable is $270,000

Explanation:

The formula is used to compute the adjusted sale price of the comparable:

= Sale Price - Superior material cost - Square footage cost

= $315,000 - $20,000 - $25,000

=$270,000

The sale price reflects that price on which the property is sold, whereas the superior material is an expense related to the property. Hence, it is deducted from the sale price.

And, the more square footage is produced which is also an expense for a company. So, this also would be deduct from the sale price.

Hence, the adjusted sale price of the comparable is $270,000