Homework 2

Name

Panther ID
(last 4 digits)

Juan Betancur

Sales comparison approach

Assumptions
Market conditions(Value growth)
Lot price
Construction quality(Relative to all siding)
Siding/brick
Brick
Effective age(Annual depreciation)
Living area
Bath
Porch, patio, deck area
Pool area

0.20% / Month
$130,000 / Acre
$2,000
$4,000
$1,500
$60.00
$4,500
$22.00
$10,000

/ Year
/ SF
/ Bath
/ SF

Comparable Properties
Elements of Comparison
Sale price of comparable
Transaction characteristics
Property rights conveyed
Financing terms
Conditions of sale
Expenditures immed. after purchase
Market conditions(Months ago)
Property characteristics
Location
Physical characteristics
Site/lot size(Acres)
Construction quality
Effective age(Years)
Living area(SF)
Number of baths
Garage spaces
Porch, patio, deck(SF)
Fence, pool, etc.
Economic characteristics
Use
Nonrealty components

Comp
Sale 1
$245,800

Comp
Sale 2
$279,040

Today

Same
Same
Same
None
0

Same
Same
Same
None
6

Parkway Estates

Same

Same

0.30
Siding/brick
5
2,290
3.0
2
350
Pool
N.A.
Single-family
None

0.30
Siding/brick
4
2,140
2.5
2
None
Pool
N.A.
Same
None

0.41
Brick
3
2,349
4.0
2
250
None
N.A.
Same
None

Subject

Comp
Sale 1
$245,800

Comp
Sale 2
$279,040

Subject

Fee simple
Conventional
Arm's length

Adjustment
Elements of Comparison
Sale price of comparable
Transaction adjustments
Adj. for property rights conveyed

Fee simple

Adj. for financing terms

Adj. for conditions of sale
Adj. for expenditures immed. after purchase
Adjustment for market conditions
Adjusted price
Property Adjustments for
Location
Physical characteristics:
Site/lot size(Acres)
Construction quality
Effective age(Years)
Living area(SF)
Number of baths
Garage spaces
Porch, patio, deck
Fence, pool, etc.
Total adj. for physical characteristics
Economic characteristics
Use
Nonrealty components
Indication of subject value

Conventional
Arm's length
Today

0
0
0
0
245,800

Suburban
0.3
Siding/brick
5
2290
3
2
350
Pool
0
0
0

Source
Comparable Sale 1
Comparable Sale 2
Comparable Sale 3
Indicated value (using the sales comparison approach)

Final Adjusted
Sale Price
263,250
267,248
272,602

0
0
0
(1,500)
9,000
2,250
0
7,700
0
17,450
0
0
0
263,250

Weight
50%
30%
20%

0
0
0
3,348
282,388

0
(14,300)
(2,000)
(3,000)
(3,540)
(4,500)
0
2,200
10,000
(15,140)
0
0
0
267,248

Weighted Price
131,625
80,174
54,520
266,319

2478

Comp
Sale 3
$220,900
Same
Same
Same
None
12
Same
0.20
Siding
8
1,970
3.0
2
None
Pool
N.A.
Same
None
Comp
Sale 3
$220,900
0

0
0
0
5,302
226,202

0
13,000
2,000
4,500
19,200
0
0
7,700
0
46,400
0
0
0
272,602

Cost Approach
Assumptions
Living area cost
Living area
Physical depreciation

97.00 per SF
2,290 SF
9% of total improvement cost

Cost Approach
Reproduction cost of improvements
Living area (conditioned space)
Garage area
Appliances, porch, patio areas
Total
Less: Depreciation of improvement
Physical deterioration
Functional obsolescence
External obsolescence
Total
Depreciated value of improvements
Plus: Value of the site
Plus: Landscaping etc.
Indicated value by cost approach (rounded)

222,130
9,100
3,800
235,030
21,153
0
0
213,877
52,000
6,600
272,477

Reconciliation
Source
Sales comparison approach
Cost approach
Estimated Value

Indicated Value Weight

266,319
80%
272,477
20%

of total improvement cost

Weighted Price
213,055
54,495
267,550