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ow did they get 3% and 1 % (%price difference)

ow did they get 3% and 1 % (%price difference)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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How did they get 3% and 1 % (%price difference)
Paired Sales for location adjustment Comparable # 1 is located closer to the city's downtown. The price per front foot is used as a unit of comparison. Two sets time adjusted sale prices per front foot of lots in the neighbourhood are used to determine the location adjustment. The four sales used in pairing method were comparable to the subject land and similar to each other in the pairings. Paired Set Sale Price Sale Date Time Adj. Price % Price Difference 69 Hurricane Ave Jul 11, 2015 $448,000 $9,333/fr.ft $9,333 3% 233 Via Carmine Ave. $230,000 Jan 30, 2015 $9,100 $9,200/fr.ft. 32 Hurrican Ave. $450,000 Feb 21, 2015 $9,250 $9,925/fr.ft. 1% 303 Via Carmine Ave. $9,166 $220,000 $9,166/fr.ft. Mar 30, 2014 The analysis of paired sales above indicates that the land price of the comparable # 1 ranges from +1% to 2% greater than that of the subject neighbourhood. A fair and reasonable adjustment for superior location for comparable # 1 based on the above analysis is 2%.
Transcribed Image Text:Paired Sales for location adjustment Comparable # 1 is located closer to the city's downtown. The price per front foot is used as a unit of comparison. Two sets time adjusted sale prices per front foot of lots in the neighbourhood are used to determine the location adjustment. The four sales used in pairing method were comparable to the subject land and similar to each other in the pairings. Paired Set Sale Price Sale Date Time Adj. Price % Price Difference 69 Hurricane Ave Jul 11, 2015 $448,000 $9,333/fr.ft $9,333 3% 233 Via Carmine Ave. $230,000 Jan 30, 2015 $9,100 $9,200/fr.ft. 32 Hurrican Ave. $450,000 Feb 21, 2015 $9,250 $9,925/fr.ft. 1% 303 Via Carmine Ave. $9,166 $220,000 $9,166/fr.ft. Mar 30, 2014 The analysis of paired sales above indicates that the land price of the comparable # 1 ranges from +1% to 2% greater than that of the subject neighbourhood. A fair and reasonable adjustment for superior location for comparable # 1 based on the above analysis is 2%.
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