New Jersey Real Estate Practice Exam Free Practice Question
A ranch house with a double garage is being valued. The house next door, which is similar except that it lacks a garage and has an outside deck, was sold last month for $138,000. Experience in that area shows that a two-car garage is probably worth $10,000 to buyers, while in general, they will pay only $500 extra for a deck. The ranch house is most likely to sell for around
Correct Answer: C
Rationale: To determine the likely selling price of the ranch house, we start with the neighboring house's sale price of $138,000. The double garage adds significant value, estimated at $10,000, while the deck adds only $500. By adding the garage value to the sale price of the neighboring house, we calculate: $138,000 + $10,000 - $500 = $147,500.
Option A ($123,500) underestimates the value of the garage. Option B ($128,500) also fails to account for the full value of the garage. Option D ($148,500) mistakenly adds an extra $1,000 beyond the calculated value. Thus, C ($147,500) accurately reflects the adjustments for the garage and deck.
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