Virginia State Real Estate Exam Practice Question
The increase in value of a home due to the addition of central air conditioning is best estimated by using
Correct Answer: D
Rationale: Estimating the increase in a home's value due to central air conditioning is best done by examining the market. The difference in sales prices of comparable homes with and without air conditioning (Option D) reflects the actual value added in the eyes of buyers, capturing real market dynamics.
Option A overestimates value by considering the full cost of installation, which doesn't necessarily translate to increased home value. Option B similarly misjudges the impact by only accounting for half the cost, ignoring market perceptions. Option C disregards installation costs entirely, missing a crucial aspect of the investment. Thus, market comparisons provide the most accurate valuation.
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