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When making adjustments based on the following information, $2,000 should be Comparable sales price $40,000 Comparable property. two-car garage Subject property. No garage Garage value...$2,000

a. added to the price of the comparable property.
b. added to the price of the subject property.
c. subtracted from the price of the subject property.
d. subtracted from the price of the comparable property.

User Dayton Tex
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1 Answer

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Final answer:

The $2,000 should be subtracted from the price of the comparable property with the two-car garage when comparing it to the subject property with no garage. In regards to Marvin's choice between two similar used cars, he should consider additional factors beyond price to determine which car to purchase.

Step-by-step explanation:

When making adjustments based on the given information, $2,000 should be subtracted from the price of the comparable property. This is because the comparable property has a feature—a two-car garage—that the subject property lacks. Therefore, to make an accurate comparison of the two properties' values, the value attributable to the garage needs to be removed from the price of the comparable property. This technique is used in real estate to assess the market value of properties by adjusting for differences in features.

In the scenario where Marvin is shopping for a used car, if he finds two cars that are very similar in terms of mileage, exterior appearances, and age, but one is priced at $4,000 and the other at $4,600, the choice on which car to buy should be based on additional factors. Does the more expensive car offer any additional features or benefits to justify the price difference? If not, then the cheaper option would be the better economic choice. However, it's crucial to inspect both cars thoroughly and perhaps consider factors like warranty, service history, and overall condition before making a decision.

User Johannes Filter
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