43. 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 $69,500. What is the adjusted value indicated for the subject property?
Answer: C
$70,500
To find the adjusted value of the subject property, we need to account for both the age difference and the value of the enclosed patio in the comparable. The comparable's sale price of $69,500 must be adjusted by subtracting the $2,000 for its age and adding $1,000 for the patio, resulting in an adjusted value of $70,500 for the subject property.
A) $68,500
This option is incorrect because it does not properly account for the adjustments necessary to determine the subject property's value. If using the comparable's sale price of $69,500, subtracting $2,000 for age would result in $67,500, which does not include the patio adjustment.
B) $69,500
This option is also incorrect. While this is the selling price of the comparable, it fails to consider the adjustments needed for the subject property, particularly the $2,000 reduction due to age, which would lead to a lower value without factoring in the patio's worth.
C) $70,500
This is the correct answer. To adjust the comparable's sale price of $69,500, we subtract $2,000 for the age difference, resulting in $67,500. Then, by adding the $1,000 value of the enclosed patio, we arrive at an adjusted value of $70,500 for the subject property.
D) $71,500
This option is incorrect as it suggests an inflated value. The adjustments indicate that the subject property should be lower than the comparable's selling price after accounting for age and the patio, making $71,500 an unrealistic figure.
Conclusion
The adjusted value of the subject property is definitively $70,500 after applying the necessary adjustments for the comparable's age and the value of the enclosed patio. All other options fail to accurately reflect these adjustments, leading to incorrect valuations.