Solve the following problem using the data outlined. Include a table of any adjustments you make to the sales prices of the comparable properties. Next, write a 3 page paper concerning Estimating Home Value. Include your calculations, chart, etc. in your paper. Discuss vital aspects when estimating the value of a property.
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 comparables that have recently sold:
Comparable Sales Price Bedrooms Swimming Pool
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1 $110,000 5 No
2 $101,000 4 No
3 $104,000 3 Yes
The appraiser estimates that each bedroom has a worth of $10,000 and a swimming pool a worth of $15,000. Given the above information, what is the estimated value of the subject property using the average derived from the comparables?
