Question

The owner of a two-acre commercial site insists that her property has appreciated by at least 5% per year since she bought it four years ago. As the appraiser, you are asked to factor this into the appraisal or refute her contention. Research in this market revealed the following sales and reseals of comparable properties: Date Price Annual Appreciation Rate 1 Price 1 month ago

Answer 1

Answer:

Answer is 1.53%.

Explanation:

The annual depreciation rates are:

1 = 1.6%

2= 2.8 %

3= 0.12 %

4=1.6 %

(These are calculated through data given in the question).

Now the average annualized reconciles appreciation rate on straight line basis = $\frac{1.6+1.6+2.8+0.12}{4}$

= $\frac{6.12}{4}$

= 1.53 %

Hence the correct answer for the question is 1.53%.