A comparable property sold for $80,000 and adjustments include downward 10% for financing terms and downward 10% for market conditions. What is the net adjusted sale price?

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Multiple Choice

A comparable property sold for $80,000 and adjustments include downward 10% for financing terms and downward 10% for market conditions. What is the net adjusted sale price?

Explanation:
The net adjusted sale price comes from applying each adjustment to the comparable’s price to reflect differences with the subject. Start with 80,000. A 10% downward adjustment for financing terms reduces it to 72,000. Apply the second downward 10% for market conditions to that result, giving 72,000 × 0.90 = 64,800. So the net adjusted sale price is 64,800. The two reductions compound (0.9 × 0.9 = 0.81), meaning the final value is 81% of the original price.

The net adjusted sale price comes from applying each adjustment to the comparable’s price to reflect differences with the subject. Start with 80,000. A 10% downward adjustment for financing terms reduces it to 72,000. Apply the second downward 10% for market conditions to that result, giving 72,000 × 0.90 = 64,800. So the net adjusted sale price is 64,800. The two reductions compound (0.9 × 0.9 = 0.81), meaning the final value is 81% of the original price.

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