Question

House X, a property comparable to a house being appraised, sold

for $420,000, but has an oversized lot valued at $25,000. The
indicated value of the subject property using this comparable
is:

Answer 1

The indicated value of the subject property, using House X as a comparable, is $395,000 after deducting the value of House X's $25,000 oversized lot from its $420,000 sale price.

Step-by-step explanation:

The student's question asks about the indicated value of a property being appraised, using a comparable property, House X, which sold for $420,000 but has an oversized lot valued at $25,000. To answer this question, we need to adjust the sale price of House X, which acts as a comparable, to account for the value of its oversized lot when estimating the value of the subject property.

First, deduct the value of the oversized lot from House X's sale price to determine what the sale price would have been without this feature.

Thus, the indicated value of the subject property, using the comparable sale of House X, would be $395,000 because this reflects the price at which House X might have sold if it did not have the feature (oversized lot) that the subject property lacks.