Justin and Jenna Jones are thinking of purchasing 720 City Park Ave # 322, Fort Collins, CO
Question:
Justin and Jenna Jones are thinking of purchasing 720 City Park Ave # 322, Fort Collins, CO and have hired your firm to perform an appraisal on the property. Another coworker has already done the HBU and cost approach parts, so you need only work on the sales comparison and income approaches at this time. Pprovide and briefly explain the following:
a) The relevant market area for the selection of comparables
b) What adjustments you will need to consider and make in general for each of the approaches. (you do not need to specify an exact amount but only if it would be a negative or positive adjustment). Will any of these be unique to only one approach or will they be applicable to both? Explain why or why not.
c) Suggest and defend weightings of the three different approaches in a final reconciliation.
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim