Reference no: EM132500964

You are appraising the sale of a property and have identified a comparable that sold 2 months ago for $800,000. Real estate prices have been softening and based on your analyses, you estimate the price change to be 0.5% per month. The identified elements of comparison are as follows:

Lot size $10 psf Comparable lot size is 200 sf larger than subject 2 car garage $5,000 Comparable does not have a 2 car garage, Subject does Porch $10,000 Comparable has a porch, Subject does not Bathroom $5,000 Comparable has 2 baths, Subject has 3 Pool $15,000 Comparable does not have a pool, Subject does What is the adjusted sales price for this Comparable property?

Assume 2 other comparable properties have adjusted sales prices of $800,000 and $810,000. Using all of the adjusted sales prices, what would you estimate the value of the subject property to be?

Given the following information, determine the value of a property using the Cost Approach:

20 acres of land

325,000 sf building

50 year useful life

8 years of estimated physical depreciation and physical obsolescence

Cost New = $150 psf

Land value based on comps is $25,000 per acre