A real estate licensee is performing a competitive market analysis. He locates a comparable property that is slightly older than the subject property. The age of the comparable makes it worth $2,000 less. The comparable has a small porch worth $1,000 than the subject property lacks. If the comparable sold for $269,500 recently, what is the estimated value of the subject property?

A. $266,500
B. $268,500
C. $270,500
D. $272,500

Answer: C. $270,500
To estimate the value of the subject property, adjust the comparable's sales price to reflect what it would sell for if it were identical to the subject property. Add $2,000 to the comparable's sales price (to make it more like the subject property, which is newer), and then subtract $1,000 from the comparable's sales price (again, to make it more like the subject property, which lacks a porch). The results is $270,500.

Business

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