Illinois Real Estate Exam 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 value of the ranch house, start with the neighboring house's sale price of $138,000. The double garage adds approximately $10,000 in value, while the absence of a deck on the ranch house means it does not incur the $500 deduction associated with the deck. Adding the garage value to the sale price gives $138,000 + $10,000 = $148,000. The closest option is $147,500, which is slightly lower but accounts for minor market adjustments.
Option A ($123,600) is too low, failing to consider the garage's value. Option B ($128,500) also underestimates the garage's worth. Option D ($148,500) slightly overestimates, as the adjustments indicate a more realistic figure around $147,500. Thus, C is the most reasonable estimate for the ranch house’s value.
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