Mr. Creary has hired you to estimate a selling price for his house using the direct...

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Mr. Creary has hired you to estimate a selling price for his house using the direct market comparison method. You have compiled the following information: Features Sale Price Sale Time Lot Size House Size Washrooms Fireplace Finished Rec. Room Walkout basement Air Conditioning Creary's House N/A N/A 45' x 110 3000 s.f. 3 Yes Yes No Yes Sale 1 $475,000 Recent 50 x 100 3500 s.f. 3 Yes No Yes Yes Sale 2 $420,000 2 months ago 55' x 100' 3200 s.f. 2 No No Required: Estimate the selling price of Mr. Maxi's house. Yes Yes Additional information of Mr. Greary's property is given as follows: (1) Projected price increase per month: 3% (ii) Projected increase started: 6 months (iii) Frontage cost per foot: $2,500 (iv) Space cost per foot ($1,000/100): $10.00 (v) Air conditioning: $2,000 (vi) Fireplace: $5,500 (vii) Finished recreation room: $9,800 (viii) Washroom: $8,000 (ix) Walkout basement: $10,000 Sale 3 $439,000 3 months ago 40 x 105' 3000 s.f. 2 Yes Yes Yes No Mr. Creary has hired you to estimate a selling price for his house using the direct market comparison method. You have compiled the following information: Features Sale Price Sale Time Lot Size House Size Washrooms Fireplace Finished Rec. Room Walkout basement Air Conditioning Creary's House N/A N/A 45' x 110 3000 s.f. 3 Yes Yes No Yes Sale 1 $475,000 Recent 50 x 100 3500 s.f. 3 Yes No Yes Yes Sale 2 $420,000 2 months ago 55' x 100' 3200 s.f. 2 No No Required: Estimate the selling price of Mr. Maxi's house. Yes Yes Additional information of Mr. Greary's property is given as follows: (1) Projected price increase per month: 3% (ii) Projected increase started: 6 months (iii) Frontage cost per foot: $2,500 (iv) Space cost per foot ($1,000/100): $10.00 (v) Air conditioning: $2,000 (vi) Fireplace: $5,500 (vii) Finished recreation room: $9,800 (viii) Washroom: $8,000 (ix) Walkout basement: $10,000 Sale 3 $439,000 3 months ago 40 x 105' 3000 s.f. 2 Yes Yes Yes No

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