19. You're doing a CMA on a four-bed, two-bath property. Comp A has three beds, two-and-a-half baths, and sold for $325,000. Comp B has three beds, three-and-a-half baths, and sold for $335,000. Given this, what is the value of a full bathroom in this area?
Answer: D
The value of a full bathroom in this area is $10,000.
The analysis of the comparable properties indicates that the difference in the number of bathrooms significantly influences property value. By examining the sale prices of Comp A and Comp B, we can derive the value attributed to a full bathroom.
A) $20,000
This option suggests a higher valuation for a full bathroom than indicated by the data from the comparable properties. Given that the price difference between Comp A and Comp B is only $10,000, this amount cannot support the assertion that a full bathroom is valued at $20,000, making this option incorrect.
B) $5,000
While this option provides a lower estimate for the value of a full bathroom, it does not reflect the observed differences in the sale prices of the comparable properties. Since the price gap between the two properties is greater than this figure, it is unlikely that a full bathroom is valued at only $5,000, rendering this option incorrect.
C) $15,000
This value exceeds the difference in sale prices observed between Comp A and Comp B. The $10,000 price differential indicates that the value of a full bathroom is lower than $15,000, thus making this option incorrect in the context of the provided data.
D) $10,000
This option accurately represents the value derived from the comparison of Comp A and Comp B. The difference in their sale prices, attributed to the additional bathroom, confirms that a full bathroom in this area is valued at $10,000.
Conclusion
The correct answer is $10,000, as it aligns with the sales data of the comparable properties, reflecting the actual market valuation for the additional bathroom. All other options fail to accurately represent the impact of a full bathroom on property value based on the given evidence.