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The comparables location is deemed to be 10% better than the subject location. The comparable recently sold for $350,000. What is the indicated value of the subject property?

User MEvans
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1 Answer

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Final answer:

The indicated value of the subject property is calculated by determining 10% of the comparable's sale price of $350,000, which is $35,000, and subtracting it from the comparable's price. The indicated value is $315,000.

Step-by-step explanation:

If the comparable's location is 10% better than the subject location and it sold for $350,000, to find the indicated value of the subject property we need to calculate 10% of the comparable's sale price and then subtract that from the sale price to account for the less desirable location of the subject property.

First, calculate 10% of $350,000:

10% of $350,000 = 0.10 × $350,000 = $35,000

Next, subtract that amount from the comparable's sale price to find the subject property's value:

$350,000 - $35,000 = $315,000

Therefore, the indicated value of the subject property is $315,000.

User JaredPar
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