CA Qualifying the Property Discussion

Appraisal Exercise/ Qualifying the Property

Subject property:

125 Monroe Ave
Hometown, CA

4 bedrooms, 2 baths, 1,900 square feet, family room, central air (and heat), fireplace, pool, covered patio, remodeled kitchen, 2 car attached garage, lot size – 7,000 square feet, purchased new from developer 24 years ago for $240,000.

Recent Sales:

432 Orange Ave, 1,450 sq. ft., 3 br, 2 ba, fam rm, central air, 2 car garage, 4,000 sq. ft. lot, 24 years old.  Sold for $710,000, 22 days ago.

653 Lemon Ave, 2,100 sq. ft., 4 br, 2 ba, fam rm, central air, fireplace, pool, 3 car garage, 7,000 sq. ft. lot, 18 years old.  Sold for $930,000, 34 days ago.

552 Grape Street, 1,700 sq. ft., 4 br, 2 ba, fam rm, central air, fireplace, covered patio, 2 car garage, 10,000 sq. ft. lot, 23 years old. Sold for $765,000, 19 days ago.

333 Peach Street, 2,550 sq. ft., 5 br, 2.5 ba, fam rm, central air, fireplace, pool, 3 car garage, 8,000 sq. ft. lot, 17 years old.  Sold for $1,175,000, 31 days ago.

Active Listings:

785 Maple Ave, 1,290 sq. ft., 3 br, 2 ba, central air, fireplace, 2 car garage, 4,500 sq. ft lot, 40 years old (Fixer).  Asking price: $699,000, days on market – 2.

Expired Listings:

246 Madison Ave, 2,200 sq. ft., 4 br, 2 ba, fam rm, fireplace, pool, 3 car garage, 9,000 sq. ft. lot, 15 years old.   List price: $975,000, days on market – 90.

Answer this question:

What should the subject property be appraised at using the market data approach ?  Please provide a specific dollar amount (not a range).  Explain your findings.  Hint:  do not average the prices of the sold home, you must use the property features to determine the subject price.