You have been asked to
use the sales comparison approach to determine the market value of a
single-family residence that is in a high crime area. The subject property has
3 bedrooms and a screened in porch. To perform your analysis you have obtained
the following comparables:
Comparable 1: Located in
a low crime area with 3 bedrooms and no screened in porch. Recently sold for
$170,000
Comparable 2: Located in
a high crime area with 4 bedrooms and no screened in porch. Recently sold for
$150,000
Comparable 3: Located in
a low crime area with 3 bedrooms and a screened in porch. Recently sold for
$175,000
Comparable 4: Located in
a low crime area with 4 bedrooms and no screened in porch. Recently sold for
$175,000
Using the comparables
given above, how much does a 4th bedroom add to the value of a house?
$5,000
$20,000
$0
None of the above
O $15,000
