The requirement of this assignment is to determine an Estimated Home Value and write a short paper on the topic of Estimated Home Value. Use the data below to determine the correct estimate for the subject property.
Solve the following problem using the data outlined. Include a table of any adjustments you make to the sales prices of the comparable properties (this should be 1 to 2 pages). Next, write a 4 to 6 page paper concerning Estimating Home Value. Include your calculations, chart, etc. in your paper. Discuss vital aspects when estimating the value of a property. Note: The body of your paper with both the problem solving, charts, and written content should be 5 to 7 pages plus the Title Page.
Problem: An appraiser is attempting to estimate the value of a house. The subject property has four bedrooms and a swimming pool. The appraiser has found three comparable listings that have recently sold:
Comparable Sales Price Bedrooms Swimming Pool
1 $310,000 5 No
2 $301,000 4 No
3 $334,000 3 Yes
The appraiser estimates that each bedroom has a worth of $12,000 and a swimming pool a worth of $25,000. Given the above information, what is the estimated value of the subject property using the average derived from the comparables?