Question

a comparable home has a property value of $200,000. it has an extra bedroom compared to the subject. the appraiser estimates this accounts for a $15,000 difference in value between the two properties. the subject property has a larger garage, which is worth an extra $2,000 in value. considering these factors, what is the subject's adjusted property value?

Answer 1

To calculate the subject's adjusted property value, start with the comparable property value of $200,000, subtract the value attributed to the extra bedroom ($15,000), and add the value of the larger garage ($2,000), resulting in an adjusted value of $187,000.

Step-by-step explanation:

The calculation of a property's adjusted value is a standard task in real estate and involves comparing properties with similar characteristics and accounting for the differences in features. To find the subject's adjusted property value, we look at the comparable home valued at $200,000. The comparable home has one extra bedroom, which adds $15,000 to its value. Conversely, the subject property has a larger garage, adding $2,000 to its value. Considering these factors, the calculation is as follows:

Comparable property value: $200,00

Minus the extra bedroom value: -$15,000

Plus the larger garage value: +$2,000

This results in the subject property's adjusted value being $200,000 - $15,000 + $2,000, which equals $187,000. Therefore, the subject's adjusted property value is $187,000.