Real Estate Math

An Indiana appraisal has three comparable sales with adjusted values of $315,000, $322,000, and $318,500. The appraiser reconciles by averaging. What is the indicated value?

A$315,000
B$318,500
C$318,167✓ Correct
D$322,000

Explanation

Average = ($315,000 + $322,000 + $318,500) ÷ 3 = $955,500 ÷ 3 = $318,500. Actually: $315,000 + $322,000 = $637,000 + $318,500 = $955,500 ÷ 3 = $318,500.

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