You are conducting an appraisal using the comparison method. You have found twocomparable properties with the same square footage and parcel area. The sellingprice of Property 1014 was 10% less than Property 2056. Both comparables(property being appraised) are in the same neighborhood. Which notation in theappraiser's report could contribute to this difference in selling price. (Hint: Of thefactors listed, which would contribute to the greatest difference between the valueof the two properities).Utility bills of Property 1014 are 3% less than Property 2056Property 1014 was built in 1986 and Property 2056 was built in 1988.Property 1014 sold during the winter months when there are generally fewbuyers in the marketProperty 1014 has had a recent kitchen renovationProperty 1014 is closer to the regional hospital by 1.5 miles

Appraisal using comparison method is a real estate comparison method when we compare similar…

Answered: You are conducting an appraisal using…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

In 2007, the median cost of a new home was $235,500 (source. https//www census gov/const/uspric emon.pdf). If the CPI in 2007 was 100, and the CPI in 2017 was 137.27, what would the cost of a new home in 2007 be in 2017 dollars? Do not include a dollar sign in your answer. Round your answer to two (2) decimal places if necessary
Required information [The following information applies to the questions displayed below.] Carl purchased an apartment complex for $3.5 million on March 17 of year 1. of the purchase price, $1,500,000 was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $84,000. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Enter your answers in dollars and not in millions of dollars. b. What is Carl's allowable depreciation deduction for year 3 if the real property is sold on January 2 of year 3? Note: Do not round intermediate computations. Round your final answer to the nearest whole dollar amount. Depreciation for year 3
Required information [The following information applies to the questions displayed below.] Carl purchased an apartment complex for $3.3 million on March 17 of year 1. of the purchase price, $1,400,000 was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $82,000. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Enter your answers in dollars and not in millions of dollars.) a. What is Carl's allowable depreciation deduction for his real property for years 1 and 2? (Round your final answers to the nearest whole dollar amount.) Depreciation Deduction Year 1
You’re called out of an investment committee meeting at your real estate company for an important phone call. Stepping back into the meeting you find you’ve missed the initial description of the Subject Property, but a heated debate on which Comparable Properties should be used to evaluate the property is underway. Glancing at a handout your analysts have prepared, you see observe the following table: Comp A Comp B Comp C Comp D Comp E Distance from Subject 0.50 Miles 0.75 miles 1 mile 0.25 miles 0.90 miles Year of Construction 1990 2005 1985 2015 2006 Sq. Ft. 14,000 SF 24,000 SF 10,000 SF 25,000 SF 37,000 SF Months Since Sale 3 months 9 months 12 months 4 months 2 months
The number of properties newly listed with a real estate agency in each quarter over the last four years is given below. Assume the time series has seasonality without trend. Quarter 1 2 3 4 Year 1 73 89 123 92 Year 2 81 87 115 95 Year 3 76 91 108 87 Year 4 77 88 120 97 a. Develop the optimization model that finds the estimated regression equation that minimize the sum of squared error. b. Solve for the estimated regression equation. c. Forecast the four quarters of Year 5. *Please solve in excel
What would be the total fire insurance premium for Best Hardware if their $625,000 building belongs in structural classification B? The contents are worth $250,000 and they received an area rating of 1. Use Table 19-4. Round your answer to the nearest cent. A. What is the annual premium for the building? B. What is the annual premium for the contents?
The market value of a home in Boston, MA. is $330,000. The assessment rate is 30%. What is the assessed value?
You are an employee of University Consultants, Limited, and have been given the following assignment. You are to present an investment analysis of a small retail income-producing property for sale to a potential investor. The asking price for the property is $1,360,000; rents are estimated at $174,080 during the first year and are expected to grow at 2.5 percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A fully amortizing 70 percent loan can be obtained at 6 percent interest for 30 years (total annual payments will be monthly payments × 12). The property is expected to appreciate in value at 3 percent per year and is expected to be owned for five years and then sold. Required: a. What is the first-year debt coverage ratio? b. What is the terminal capitalization rate? c. What is the investor’s expected before-tax internal rate of return on equity invested (BTIRR)? d.…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
you are considering bidding of a piece of land. According to zoning, the land could be used for construction of office, retail or mixed use. The annual rental income from the Office building, Retail building and Mixed use building are 3, 2.7 and 2.8 million respectively. Expenses to operate the office building, retail building and mixed use building are 1.08, 1.2 and 1.1 million respectively. Capitalization rates for the office building, retail building and mixed use building 10%, 11% and 10.5% respectively. Construction costs for the office building, retail building and mixed use building are 10, 8, 9 million respectively. What is the highest bidding price you are willing to tender for this piece of land?
Using the information from the three office building land sales. Assume that you are valuing a similar building of 30,000 square feet. What is the appropriate land value? Sales Price Building Size Land Size Sale 1 $550,000 27,500 SF 2.50 acres Sale 2 $625,000 31,250 SF 2.50 acres Sale 3 $650,000 32,500 SF 3.25 acres
Please answer all the following questions. Kindly show the complete solution. Thank you so much. *Please refer to the picture below for the other information* Q1. What is the correct cost of the land? a. P231,500 b. P225,000 c. P227,000 d. P244,500 Q2. What is the correct cost of the new building? a. P326,950 b. P316,500 c. P313,500 d. P304,500 Q3. What is the correct cost of the land improvements? a. P24,000 b. P26,000 c. P23,200 d. P0 Q4. What is the correct net amount charged against income statement for 2016? a. P115,861 b. P108,250 c. P33,250 d. P120,000

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