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Determine an Estimated Home Value and write a short paper on the topic of Estimated Home Value. Use the data below to determine the correct estimate for the subject property.
Solve the following problem using the data outlined. Include a table of any adjustments you make to the sales prices of the comparable properties. Next, write a 3 page paper concerning Estimating Home Value. Include your calculations, chart, etc. in your paper. Discuss vital aspects when estimating the value of a property.
Problem: An appraiser is attempting to estimate the value of a house. The subject property has four bedrooms and a swimming pool. The appraiser has found three comparables that have recently sold:
Comparable Sales Price Bedrooms Swimming Pool
1 $110,000 5 No
2 $101,000 4 No
3 $104,000 3 Yes
The appraiser estimates that each bedroom has a worth of $10,000 and a swimming pool a worth of $15,000. Given the above information, what is the estimated value of the subject property using the average derived from the comparables?
