Sarah Fluggel is considering the purchase of ahome located at 2121 Tarter Circle in Frisco,Texas.The home has 3,000 square feet of heated and cooled living area,and the current owners are asking a price of $375,000for it.
a. Use the information provided in the following table to determine an initial estimateof the value of the home Sarah is considering
Comp #1Comp #2
Sale price $240,000 $265,000
Square footage 2,240 2,145
Selling price/sq.ft. $107.14 $123.54
Time on the market 61 days 32 days
b. After making her initial estimate of the value of the home,Sarah decided to investi-gate whether the owner's asking price of $375,000 might be justified based on unique attributes of the home.What types of details might you recommend Sarahlook for in trying to justify the price of the home?
c. What if the house Sarah is considering had an asking price of $315,000? What wouldyou recommend Sarah do then?