A comparable property sold six months ago for $250,000 and similar properties have increased in price by 5%. What would the likely value of a similar house be today?

The current value of a similar house is determined by adjusting the sale price of the comparable property based on the percentage increase in property values over the past six months. In this case, the comparable property sold for $250,000, and similar properties have appreciated by 5%.

To find the adjusted value, you can calculate the increase in value first. A 5% increase on $250,000 is found by multiplying $250,000 by 0.05, which equals $12,500.

Then, adding this increase back to the original price provides the new estimated value. So, $250,000 plus $12,500 equals $262,500. This makes $262,500 the most likely current value for a similar house given the market trends.

This method of using comparable sales and adjusting for market conditions is essential for real estate appraisals and ensures that property values reflect current market dynamics.