LifeHome Realty is appraising a 15 year old two storey detached home with a double car garage on a 40 feet frontage lot. It has four 4 piece and one 2 piece bathrooms. It has finished basement. It has central air-conditioning, which adds $8,000 to its value. It has a brand new gas fireplace, which cost $6000. Its kitchen is functionally obsolete and need to be replaced. Its roof needs to be replaced. It has a pie shaped premium lot backing ravine.
In analyzing the M.L.S. statistics for this area the following average house prices were obtained:
1 month ago $850,900
2 months ago $846,700
4 months ago $838,300
6 months ago $830,000
Using the following comparable sales, determine the market value of the subject property:
Sale #1
On a 45 feet frontage lot with a double car garage sold just yesterday for $920,000. Lots in the area cost $6000 per front foot. Its condition and design are the same as the subject property, but location is not the ravine lot. It has a brand new kitchen and a finished basement which cost $30,000 and $60,000 respectively. It has a double car garage and five 4 piece bathrooms. It has a gas fireplace and air-conditioning. Its roof needs to be replaced at a cost of $15,000.
Sale #2
Sold 2 month ago for $1,020,000. It backs on to the ravine, requiring an adjustment of $60,000. The house is on a 45 feet frontage lot with a brand new kitchen. It has a fireplace, double car garage and a new roof. It does have air-conditioning and the basement is finished. It has four 4 piece and one 2 piece bathrooms. Its condition and design are superior to the subject property requiring an adjustment of $30,000.
Sale #3
This house is on a 50 feet frontage lot. It was sold 3 months ago for $980,000. Its condition is superior to the subject property requiring an adjustment of $25,000. Its location and design are similar to the subject property. It has air-conditioning but no fireplace. It has a double car garage and the finished basement. Its roof needs replacement. Its kitchen is functionally obsolete. It has three 4-piece and one 2-piece bathroom. An additional 4-piece bathroom adds $10,000 and a 2- piece adds $6000 to the value of the house.
