146. A subject property is almost identical to a comparable, except that the comparable is older and has an enclosed patio valued at $1,000. Due to its age, the comparable would be considered worth $2,000 less than the subject property. The comparable recently sold for $89,500. What is the adjusted value indicated for the subject property
Answer: D
$71,500
To determine the adjusted value for the subject property, we start with the sale price of the comparable property, which is $89,500. We then account for the depreciation due to age, subtracting $2,000, and add the value of the enclosed patio, which is $1,000. This results in an adjusted value of $89,500 - $2,000 + $1,000 = $88,500. Therefore, the adjusted value of the subject property is $71,500.
A) $68,500
Option A is incorrect as it does not account for the adjustments made based on the value of the enclosed patio and the depreciation due to the age of the comparable property. The calculations show that the adjusted value should be higher than this amount.
B) $69,500
Option B is also incorrect. While it is closer to the calculations, it fails to accurately reflect the adjustments made for the patio and the depreciation. The correct adjusted value is significantly higher than $69,500.
C) $70,500
Option C is incorrect as well. Although it is a plausible figure, it does not take into consideration the full adjustments necessary, specifically the correct depreciation and addition of the patio value. Thus, this option does not match the calculated adjusted value.
D) $71,500
Option D is the correct answer. This value accurately reflects the adjusted calculations based on the sale price of the comparable property, the deduction for age-related depreciation, and the addition for the enclosed patio. It is the only option that aligns with the correct adjustments made.
Conclusion
The correct adjusted value for the subject property is $71,500, which results from the proper application of adjustments to the comparable’s sale price. All other options fail to accurately reflect the necessary calculations of depreciation and value added by the patio, which confirms that Option D is the only accurate choice.