Given the following information, determine the value of having an additional bathroom. Assume that the comparable properties are similar in all other attributes besides those listed in the table below. $$\begin{array} { | l | c | c | c | c | }
\hline & \text { Comparable 1 } & \text { Comparable } 2 & \text { Comparable 3 } & \text { Comparable 4 } \
\hline \text { Time Sold } & \text { Today } & 1 \text { Year Apo } & \text { Today } & \text { Today } \
\hline \text { Bathrooms } & 1 & 1 & \mathbf { 2 } & \mathbf { 2 } \
\hline \text { Size } & 3500 \mathrm { sq } . \mathrm { ft } & \mathbf { 3 0 0 0 ~ s q . ~ f t . } & 3500 \mathrm { sq } . \mathrm { ft } & \mathbf { 3 0 0 0 } \mathrm { sq } . \mathrm { ft } \
\hline \text { Sale Price } & \$ 150,000 & 140,000 & \$ 160,000 & \$ 156,000 \
\hline
\end{array}$$
A) $4,000
B) $6,000
C) $10,000
D) $16,000

Question

Given the following information, determine the value of having an additional bathroom. Assume that the comparable properties are similar in all other attributes besides those listed in the table below. $$\begin{array} { | l | c | c | c | c | } 
\hline & \text { Comparable 1 } & \text { Comparable } 2 & \text { Comparable 3 } & \text { Comparable 4 } \
\hline \text { Time Sold } & \text { Today } & 1 \text { Year Apo } & \text { Today } & \text { Today } \
\hline \text { Bathrooms } & 1 & 1 & \mathbf { 2 } & \mathbf { 2 } \
\hline \text { Size } & 3500 \mathrm { sq } . \mathrm { ft } & \mathbf { 3 0 0 0 ~ s q . ~ f t . } & 3500 \mathrm { sq } . \mathrm { ft } & \mathbf { 3 0 0 0 } \mathrm { sq } . \mathrm { ft } \
\hline \text { Sale Price } & \$ 150,000 & 140,000 & \$ 160,000 & \$ 156,000 \
\hline
\end{array}$$
A) $4,000
B) $6,000
C) $10,000
D) $16,000

Quizplus · Accepted Answer

To determine the value of an additional bathroom, compare properties with the same size and sale date but different numbers of bathrooms. Comparables 1 and 3 both sold today and have the same size (3500 sq. ft.), but Comparable 3, with 2 bathrooms, sold for $160,000 compared to Comparable 1, with 1 bathroom, which sold for $150,000. The difference in sale price, $10,000, represents the value of having an additional bathroom.

Given the Following Information, Determine the Value of Having an Additional