Property Valuation
A Maine vacant waterfront lot sells for $120,000. A similar lot without waterfront access sells for $45,000. The 'water premium' indicated by these sales is approximately:
A$45,000
B$75,000✓ Correct
C$90,000
D$120,000
Explanation
Water premium = $120,000 − $45,000 = $75,000, or approximately 167% more than the inland lot. Using the values given ($120,000, $45,000), apply the appropriate formula.. The correct answer is $75,000.. This is a common calculation on the Maine real estate exam.
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