Question

In using the sales comparison approach to determine the current value of the subject property, it is important to recognize that general market conditions may have changed since a particular transaction occurred. Property A sold 22 months ago for $98,500 and Property B sold 20 months ago for $105,000. If the two properties are priced today at $108,000 and $113,500, respectively, assuming no compounding, what is the average monthly rate of change in sale prices that can be used to adjust other comparable sales in the neighborhood? (Input your answer as a percentage rounded to the nearest hundredth and without the % sign, e.g., 0.25% is input as 0.25 not 0.0025)

Answer 1

Average Monthly Rate of change in sales price=((108000-98500)/98500*1/22+(113500-105000)/105000*1/20)/2=0.4216%