Real Estate Math
A Rhode Island appraiser finds two comparable sales: one is 10% larger than the subject property and sold for $330,000, while another is 5% smaller and sold for $290,000. Assuming a linear relationship, what would the adjusted value of the larger comp be per additional square foot if the subject is 1,500 sq ft?
AApproximately $300,000✓ Correct
BApproximately $305,000
CApproximately $310,000
DApproximately $315,000
Explanation
This is a simplified illustration: the larger comp at 1,650 sq ft sold for $330,000 ($200/sq ft). After a downward adjustment for 150 extra sq ft at approximately $200/sq ft, the adjusted value = $330,000 - $30,000 = $300,000.
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