Real Estate Math
A Massachusetts property is appraised at $620,000 using the sales comparison approach and $640,000 using the income approach. The appraiser weights the sales comparison at 70% and the income approach at 30%. What is the reconciled value?
A$626,000✓ Correct
B$630,000
C$620,000
D$635,000
Explanation
Reconciled value = (0.70 × $620,000) + (0.30 × $640,000) = $434,000 + $192,000 = $626,000. To solve this, multiply the relevant values: $620,000 and $640,000 at 70%.. The correct answer is $626,000.. This is a common calculation on the Massachusetts real estate exam.
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