SOMEONE KIND PLEASE ANSWER QUESTIONS 50, 51, 52, 53 So many people gave me wrong
ID: 2793959 • Letter: S
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SOMEONE KIND PLEASE ANSWER QUESTIONS 50, 51, 52, 53
So many people gave me wrong answers.
Case Study You have an appointment to list Mr, and Mrs. Duval's property and are trying to determine a listin based on the direct comparison approach. On a previous visit, you compiled the following information. The Duval property is a 3 bedroom bungalow with a 4 piece bathroom. It is on a 55 x 135 foot lot with a double garage. There is a recreation room, a fireplace but no walkout, the size of the building is 121 square metres and the home is in a good location You have researched the following comparables 53 Conklin Street sold 5 months ago for $132000 Building size is 125 sq. m, there is a walkout basement and a fireplace. The lot size is 52 x 130 feet and it has 1-4 piece bathroom. There is a recreation room, single garage and it is in a fair location. It is similar to the subject in all other respects Sale #1 : Sale #2: 197 Atkinson Drive sold 3 months ago for $126,300 There is 1-4 piece bathroom and 1-2 piece washroom but no fireplace. Building size is 126 sq.m. and lot size is 55 x 128 feet. It has a single garage, no recreation room and is in a fair location. It is similar to the subject in all other respects Sale #3 87 Maple Avenue sold 1 month ago for $138,000 Location is same as the subject and has a recreation room and fireplace. Building size is 124 sq.m., lot size is 55 x 132 feet. 1-4 piece bathroom and single car garage. It is similar to the subject in all other respects Note the following . Sale pnces have risen gradually and evenly by a total of 6% over the last year. Lots in the area sell for $1,200 per front foot. Construction costs are $710 per square metre. 2-piece washrooms add $1,500 to value. Single garages add $4,000 to value while double garages add $8,500 to value. Finished recreation rooms add $5,000 to value. location is estimated to be worth $6,000 less than a good location. Fireplaces add $4,000 to value . A walk out basement adds $3,500 to value. Based on the information provided and using the direct comparison approach, answer the following four questions.Explanation / Answer
Listing Price under Direct Comparison method is calculated based on the Adjusted Price of Comparable Property. Comparable property is generally picked from the same area where the property, which is to be listed, is located because it provides the most accurate price for the property in question.
Comparable property, though located in the same area, may be different in some aspects from the property in hand. So, we need to adjust the price of the comparable property with some additions and deletions to its value. The modifications in price will be done based on the whole structure of the property in hand.
In short, we have to find an Equivalent price of the property i.e. the price of the comparable property if it is totally similar or exactly same as the property, which is required to be listed. Only the differences in the two properties are to be considered and the aspects, in which the two properties are similar, will be ignored while calculating Totally Adjusted Sale Price.
In the given case, we need to find the listing price of Mr. & Mrs. Duval's Property and we have 3 Comparable properties.
Ans to Que 50 : Totally Adjusted Sale Price of Sale#1, 53 Conklin Street is $ 143,060. The calculation is as follows:
Hence, Totally Adjusted Sale Price is = $1,32,000+3300 + $3,600 - $ 2,840 - $ 3,500 + $ 4,500 + 6,000 = $1,43,060
Hence, option (a) is correct.
Ans to que 51 : Totally Adjusted sale price of Sale#2, Atkinson Drive is $ 1,42,645 (rounded off), calculated as follows:
Hence, Totally Adjusted Sale Price is = $ (126300 +1894.5 -1500 +4000 -3550 +4500 +5000 +6000) = $1,42,644.5 rounded off to $ 1,42,645
Hence, option (c) is correct.
Ans to Que 52: Totally Adjusted Sale Price of Sale#3, 87 mapple Avenue is $ 1,41,060 .Calculated as follows:
Hence, Total Adjusted Sale price is = $ 1,38,000 + $690 - $2,130 +$4,500 = $1,41,060
Hence, option (a) is correct.
Ans to Que 53: If 197 Atkinson Drive was in an excellent location rather than in fair location, then the amount of adjustment that have to be made to this property is -$7,000 Since excellent locations were judged to be $ 7,000 more than the good locations. Therefore, option (a) is correct
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