Free Pennsylvania Real Estate Practice Exam Practice Question
An appraiser evaluating a subject property discovers that comparable houses are selling at the rate of $153 per square foot of living area plus $21,800 for the land. If the subject property has 2,000 square feet of living area, the appraiser's estimate of value is approximately:
Correct Answer: C
Rationale: To determine the estimated value of the subject property, multiply the living area by the price per square foot and then add the land value. Here, the calculation is as follows:
1. **Living Area Value**: 2,000 sq ft × $153/sq ft = $306,000.
2. **Total Value**: $306,000 + $21,800 (land value) = $327,800.
The closest option to this calculation is C: $323,138, which accounts for rounding or minor adjustments in values.
**Option A** ($100,060) significantly underestimates the value, ignoring both living area and land contributions.
**Option B** ($204,636) also fails to consider the full living area value.
**Option D** ($351,636) overestimates the land or living area value, deviating from the provided rates.
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