You are considering the purchase of a 2,300 square foot house that is being offered for $238,500. After researching recent home sales in the area, you find three that are comparable

The first was a 2,500 square foot home that sold for $225,000, the second was a 2,200 square foot home that sold for $200,000 and the third was a 2,000 square foot home that sold for $178,000. Based on your analysis, what would be a reasonable offer on the house? (Round all computations to the nearest dollar.)
A) $210,000
B) $207,000
C) $205,000
D) $201,000


Answer: B
Explanation: B)
$225,000/2,500 sq. ft. = $90
$200,000/2,200 sq. ft. = $91 (rounded)
$178,000/2,000 sq. ft. = $89
$270/3 = $90 sq. ft. × 2,300 sq. ft. = $207,000

Business

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