Michigan Real Estate Exam Practice Question
A broker doesn't have a listing but shows a property. If someone receives a $100,000 offer on the property, what is the price the borrower paid for the property?
Correct Answer: C
Rationale: In this scenario, the offer of $100,000 reflects the market value of the property, which is typically what a buyer is willing to pay. Option C, $68,800, aligns with common pricing strategies where properties are often listed below market value to attract offers.
Option A ($64,500) and Option B ($62,200) are too low, suggesting an unrealistic expectation of the property's worth, which could deter potential buyers. Option D ($300,000) is excessively high and does not reflect the offer received, indicating a misunderstanding of market dynamics. Thus, $68,800 is the most plausible price the borrower paid, considering the context of the offer.
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