Appraisal Assignment

Using the Sales Comparison Approach

This assignment utilizes the Sales Comparison Approach to determine the current Market Value of a Single Family $1$ unit Residential property. You are a Residential Real Estate Agent preparing to go on a Listing Appointment to the Homeowner to list their property for Sale.

Part of the preparation for this appointment is to determine the suggested listing price you will recommend to position the property on the Market at a fair Market Value. The goal is to price the property within reasonable expectation of what would be the eventual Appraised value. This assignment will use some of the basic key aspects to compare the properties. Appraisers will use other factors as well when doing their adjustment work but we will keep things simple for this assignment.

You will be provided the information for the Subject Property and also $3$ comparable properties that have recently sold in the local immediate area. You will use the information provided from the $3$ comparable properties to determine the estimated value range of the Subject Property, and then from that range select a suggested sales price for the Subject.

Instructions:

Step $1$: Review the Subject Property main characteristics and the $3$ Sold Comparable main characteristics: Step $2$: Determine dollar adjustments to the Comparable Sale price amounts based on variances in key features using the table below. Remember is a feature of the comparable is worse or less than Subject then you ADD the adjustment dollars to the sales price and if the features is better or greater then Subject then you SUBTRACT the adjustment dollars to the sales price. If the feature is the same between properties than NO adjustment is made. Use plus or minus signs to keep track if you are adding or subtracting an adjustment value

Adjustment Table

Gross Living Area $($GLA$)$: IF GLA VARIANCE of Comp to Subject is greater than $100$ sqft of Subject, only then take the variance amount and multiple that amount by $\backslash (\backslash$$ $50\backslash )$ per sqft$.$ Example: Subject GLA $\backslash (=1,000\backslash )$ sqft$,$ Comparable GLA $\backslash (=1,200\backslash )$ sqft$.$ Variance $\backslash (=200\backslash )$ sqft $\backslash ($ X $\backslash$$ $50=\backslash$$ $10,000\backslash )$ adjustment to price $($subtracted because Comp GLA was greater than Subject$).$ IF GLA $=1,000$sft and Comparable is $1,100$ sqft then NO adjustment is made!

Bedroom Count: Each Bedroom variant to Subject is a $\backslash (\backslash$$ $5,000\backslash )$ adjustment. $($Ex$.$ Sub $3$Bed vs Comp $2$ Bed is an adjustment $\backslash (+\backslash$$ $5,000\backslash ))$

Bathroom Count: Each Bathroom variant to Subject is a $\backslash$$$5,000$ adjustment, $\backslash$$$2,500$ adjustment for half bath.

Kitchen condition: $\backslash$$$10,000$ adjustment between each quality step: $($Below Average, Average, Updated, Remodeled$).($Ex$.$ From Average to Remodeled $\backslash (=\backslash$$ $20,000\backslash )$ adjustment$).$

Overall Bathroom condition: $\backslash$$$5,000$ adjustment between each quality step: $($Below Average, Average, Updated, Remodeled$).$

Heating$/$Cooling: $\backslash$$$5,000$ adj vs None for Central Air, $\backslash$$$1,000$ adj vs None for Wall$/$Window AC$,$ Central vs Wall$/$Window AC $=\backslash$$$4,000.$

Garage spaces: Each Garage space variant to Subject is a $\backslash$$$5,000$ adjustment.

Interior features: $\backslash$$$3,000$ adjustment between each quality step: $($Below Average, Average, Updated, Remodeled$).$

Pool: $\backslash$$$20,000$ adjustment $($having pool vs not having pool$).$

Dollar Adjustments $(+/-\backslash$$$)$

Gross Living Area

Bedroom Count

Bathroom Count

Kitchen condition

Overall Bathroom Cond

Heating$/$Cooling Type

Garage spaces

Interior features

Comp $\backslash$#$1$

Comp $\backslash$#$2$

Comp $\backslash$#$3$ Step $3$: Fill in the adjusted sales prices from Step $2$ for the Comparable properties and determine the adjusted price range the Subject Property would fall within.

Step $4$: From the Adjusted Sales Price Range, select a final suggested listing price. Which of the $3$ Comparable properties most influenced you on the final price decision? Then explain why in the Justification for Subject Listing Price section. This is you explaining what you will say to the Homeowner as justification of listing at that price. Your explanation should be more than a simple sentence.

Recommended Subject Listing Price $\backslash (=\backslash )$ :

Comparable Property most similar to Subject Property is $=\_$

Justification for Subject Listing Price $\backslash (=\backslash )$

End of Assignment