Question

Favorable mortgage financing may have a significant impact on the transaction price of the particular property. If the comparable property was known to have had favorable financing terms negotiated into the transaction price, which of the following adjustments should take place? (Note: Assume that the comparable property cannot be dropped from the analysis as there are already limited comparable sales transactions)A) The transaction price of the comparable property should be adjusted downward.
B) The transaction price of the comparable property should be adjusted upward.
C) The transaction price of the subject property should be adjusted downward.
D) The transaction price of the subject property should be adjusted upward

Answer 1

Answer:

C) The transaction price of the subject property should be adjusted downward.

Explanation:

In comparable market transaction models; it is to be noticed and seen that usually buyer and sellers seeks the market trends and then take decisions. Properties values are accessed and compared with recent market trends that comprises of the recent transactions occurred of the same type of property etc. It also varies with the physical locations, type of property,