25. An appraiser evaluating a subject property discovers that comparable houses are selling at the rate of $153 per square foot of living area plus $21,800 for the land. If the subject property has 2,000 square feet of living area, the appraiser's estimate of value is approximately:
Answer: C
The appraiser's estimate of value is approximately $323,138.
To determine the value of the subject property, the appraiser calculates the total value based on the selling rate of comparable houses. The value is derived from multiplying the square footage by the price per square foot and then adding the land value.
A) $100,060
This option is incorrect because it significantly underestimates the value of the subject property. The calculation of $100,060 does not align with the given selling rate of $153 per square foot or the land value of $21,800.
B) $204,636
This option is also incorrect as it does not accurately reflect the appraiser's calculations. The estimated value of $204,636 is too low when considering the square footage of the property and the price per square foot provided.
C) $323,138
This is the correct answer. The estimated value is calculated by multiplying the living area of 2,000 square feet by the selling rate of $153 per square foot, which equals $306,000. Adding the land value of $21,800 results in a total value of $327,800, which is rounded to approximately $323,138.
D) $351,636
This option is incorrect as it overestimates the value of the subject property. The calculation leading to $351,636 does not correctly apply the price per square foot and land value as specified in the context.
Conclusion
The correct answer, $323,138, is derived through accurate application of the price per square foot and the land value. All other options fail to reflect the correct calculations based on the provided data, showcasing the importance of precise arithmetic in property appraisal.