Property Valuation
A 2,000 sq ft home in a neighborhood has a value of $400 per square foot based on comparable sales. Using the sales comparison approach, what is the indicated value?
A$400,000
B$800,000✓ Correct
C$200,000
D$4,000,000
Explanation
Indicated value = Size × Price per sq ft = 2,000 sq ft × $400/sq ft = $800,000. This per-square-foot method is a simplified version of the sales comparison approach commonly used by agents and appraisers.
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