4.Appraisal_ExampleFullSolution.xlsx

Table 1: Table of Comparison

Elements of Comparison
Subject
Comp 1
Comp 2
Comp 3

Sale price of comparable

$ 510,000.00
$ 525,000.00
$ 499,000.00

Transaction Characteristics

Property rights conveyed
Fee simple
Same
Same
Same

Adjusted price

Financing terms
Conventional
Same
Same
Same

Adjusted price

Conditions of sale
Arm’s length
Same
Same
Same

Adjusted price

Expenditure immed. after purchase

None
3,000
None

Adjusted price

Market condition
Today
3 months ago:
6 months ago:
6 months ago:
Note: All the comparables are recently sold properties. Percentage change is given in the example.

(add 2% total)
(add 4% total)
(add 4% total)

Property characteristics

Location
Huntington
Huntington
Kensington
Millhoper

Physical characteristics

(subtract 3% total)
(subtract 3% total)

Site/lot size (sg.ft)
6,662
6,700
6,800
6,600

Construction quality
Typical
Typical
Typical
Typical

Condition
Average
Average
Average
Average

Age (years)
5.5
7
8
10

Living area (sq.ft)
3473
3920
3985
3835

Number of baths
3
3.5
3
2

Garage Space (# of car space)
2
2
2
1

Porch. Patio, deck
Cov. Porch/wood deck
Cov.Porch
Cov. Porch
Cov. Porch

Fence, pool, etc.
None
None
Pool
Pool

Economics characteristics
N.A
N.A
N.A
N.A

Use
Single-family
Single-family
Single-family
Single-family

Non-realty Components
None
None
None
None

Table 2: Table of Adjustments

Elements of Comparison
Subject
Comp 1
Comp 2
Comp 3

Sale price of comparable

$ 510,000.00
$ 525,000.00
$ 499,000.00

Transaction Characteristics

Property rights conveyed
Fee simple

There is no adjustments on these three since they are the same for each property.

Adjusted price

Financing terms
Conventional

Adjusted price

Conditions of sale
Arm’s length

Adjusted price

Expenditure immed. after purchase

$ 3,000.00

Adjusted price

Market condition
Today
$ 10,200.00
$ 21,120.00
$ 19,960.00
Refer to row D 16 for the percentage adjustment information. Subject property sells at higher price because market appreciates.

Adjusted price

$ 520,200.00
$ 549,120.00
$ 518,960.00

Property characteristics

Location
Huntington

$ (16,473.60)
$ (15,568.80)
As Huntington are less desirable than Kensington and Millhoper, subject should sell at 3% less than comparable 2 and 3. 3% is given in the example.

Physical characteristics

Site/lot size
6,662 sq. ft
$ (760.00)
$ (2,760.00)
$ 1,240.00
An incremental square foot of lot size is worth about $20 per square foot, given in example. Smaller property sells at lower price.

Construction quality
Typical

$ – 0

Condition
Average

$ – 0

Effective age
5.5 years
$ 4,500.00
$ 7,500.00
$ 13,500.00
Each year of effective age reduces the value of properties in this market by about $3,000 per year. Younger property sells at a higher price.

Living area
3,473 sq. ft
$ (35,760.00)
$ (40,960.00)
$ (28,960.00)
An incremental square foot of living area is worth about $80 per square foot, given in example. Smaller property sells at lower price.

Number of baths
3
$ (500.00)
$ – 0
$ 1,000.00
Each additional half-bath is worth $500; each additional full bath $1,000. given in example

Garage Space
2-car
$ – 0
$ – 0
$ 8,000.00
Additional garage space is worth $8000. given in example

Porch. Patio, deck
Cov. Porch/wood deck
$ 1,000.00
$ 1,000.00
$ 1,000.00
Additional wood deck is worth $1000. given in example

Fence, pool, etc.
None
$ – 0
$ (12,000.00)
$ (12,000.00)
Additional pool is worth $12,000. given in example

Economics characteristics
N.A
$ – 0
$ – 0
$ – 0

Use
Single-family
$ – 0
$ – 0
$ – 0

Non-realty Components
None
$ – 0
$ – 0
$ – 0

Indication of Subject Value

$ 488,680.00
$ 485,426.40
$ 487,171.20

Weight

50%
25%
25%
You could decide what weight to assign to each property and need to justify your assignments in the report.

Final Consolidation Value

$ 487,489.40