parison Grid" for a subject property. Include in the grid, all comparable sales with improvements (buildings). To get started, only adjust for land and
parison Grid" for a subject property. Include in the grid, all comparable sales with improvements (buildings). To get started, only adjust for land and
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Prepare a "Direct Sales Comparison Grid" for a subject property. Include in the grid, all comparable sales with improvements (buildings). To get started, only adjust for land and buildings. Below are the comparable sales to prepare the "Grid." The subject property is in a good location and has the characteristics described in table 5.1. Information about the comparable sales are presented in Table 5.2 and 5.3.
Show all of the calculations and supporting tables.
Transcribed Image Text:Table 5.1 Subject Property
Cropland
Pasture
Total
Dwelling (Sq.
Ft.)
Eq. Shed (Sq.
Ft.)
Sale Date
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
6 mo.
6 mo.
6 mo.
Current
Cond./
Utility
A/G
1 yr.
Current
A/A
Gr. Bin (bu.)
F/F
10,000
Table 5.2 Comparable Sale Summary
6 mo.
Current
Acres
400
110
510
Sales
Price
Size
1,000
4,000
$225,000 450
525,000 500
373,275
525
335,625
375
725,900 700
532,680
690
310,200
300 Avg.
408,536
446
Avg.
1 yr.
374,880
330
Good
6 mo.
472,500
450
Good
6 mo.
410,280 526 Good
1 year
675,378 594
Good
1 year
557,500 500 Avg.
H=house; Sh-machinery shed; b=grain bins
Acre
S
Locatio
n
Avg.
Avg.
Avg.
Avg.
Avg.
Good
$/Acre Crop
Acres
$500
1,050
711
895
1,037
772
1,034
916
1,136
1,050
780
1,137
1,115
0
500
200
300
600
300
200
346
255
300
200
509
392
Pasture
Acres
450
0
325
75
100
390
100
100
75
150
326
85
108
Bldgs.
House
Shed
Sh/bin
h/s/b
h/s/b
Transcribed Image Text:Table 5.3 Sale Summary of improvements
7
Sale No.
Cond/Util Size
Dwelling (sq. Good/good 1,000
ft.)
Eq. Shed
(Sq.ft.)
Gr. Bin (bu.
Cond/Util Size
Good/good 4,000
Cond/Util Size
Good/good 3,200
Good/good 5,000
10
Cond/Uti Size
1
Avg/avg 970
Fair/fair 4,000
Good/avg 6,000
13
Cond/Util Size
Good/good 1,025
Avg/avg 4,140
Poor/poor 5,000
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