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Classroom Management - Essay Example

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Classroom Management Name of the Student Student Number Grade Course Name of the Instructor 15th February 2012. Street The above sketch presents a street plan for the high street with properties being auctioned. A comparable could essentially be defined a property possessing similar characteristics with another property being valued (Schram, 2006)…
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Download file to see previous pages The process of estimating values of properties considers numerous elements that might affect the property value. These factors form an essential part of comparable valuing. In determining a proper comparable various conditions must be satisfied to ensure the comparable remains closely related to the subject property. The subject property valuation utilises the value of comparable to determine the estimated property values. Within the property market, various elements affect the selection of a comparable for the subject property. The current market conditions might increase or decrease prices of property depending on the accounting systems employed. According to Rees and Hayward (2001) when selecting a comparable the location and physical appearance of the property must display significant similarities. The locations of property might influence the value of property if the properties under question could both be influenced by location characteristics. The conditions under which comparables are sold could potentially affect the suitability of a property as a comparable. A property sold understate settlement, for example, might be undervalued following the conditions involved. A proper comparable should be sold under prevailing market conditions and without restrictions on either party. Numerous methods of property valuation exist within the property market. The sales comparison approach remains the most utilized valuation method involving comparables (Betts & Ely, 1998). This method involves comparison of different units forming the characteristics of the properties under comparison. This consideration of different units creates a beginning point for establishing an estimated value for subject properties. The significant characteristics that could be considered include floor area, property condition, age, and distance from essential amenities, among other property attributes. Though these elements might be considered in valuation of property, the method relies heavily on the economic principles of demand and supply. Therefore, while a value might be calculated using the method, economic factors could present a different selling price depending on demand and supply forces. Assuming the subject property consists of 1200 square feet while the comparable is 1300 square feet, with a renting price of ?8000 annually. The renting price for the subject property would be adjusted downwards. The downward adjustment would consider the floor area of these properties in comparison. A significant amount would be reduced for the subject property to cater for the difference present in properties in terms of area. From the calculations of the rent prices, the estimated for the comparable becomes ?6.16 per foot. Since the different indicated in hundred feet, an adjustment of 616 pounds would be included for the subject property making the rent price to be ?7384, which could be rounded-off to ?7400. Rent per square feet for comparable = rent/floor area = 8000/1300 = ?6.16 Since the difference in floor area is 100 square feet an adjustment of ?616 becomes necessary Property rent = comparable rent – relative adjustment = ?8000 – 616 = ?7384 (7400) Within the context of freehold property, the calculations for the selling price would become slightly altered. Freehold properties appear to have different elements of consideration during valuation. This difference occurs because of the values attached to ...Download file to see next pagesRead More
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