Property Valuation
A Michigan property has 3,500 sq ft of living area. If similar homes sell for $85 per sq ft, the indicated value using the cost approach per-square-foot method is:
A$275,000
B$297,500✓ Correct
C$310,000
D$325,000
Explanation
Value = Area x Price per sq ft. 3,500 x $85 = $297,500. Using the values given ($85), apply the appropriate formula.. The correct answer is $297,500.. This is a common calculation on the Michigan real estate exam.
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