13. An appraiser evaluating a subject property discovers that comparable houses are selling at the rate of $153 per square foot of living area plus $28,500 for the lot. If the subject property has house dimensions of 22 feet by 48 feet and is 2-stories high, the appraiser's estimate of value is approximately:
Answer: C
The appraiser's estimate of value is approximately $323,136.
To calculate the value of the subject property, the appraiser multiplies the square footage of the house by the price per square foot and then adds the value of the lot. The house dimensions yield a living area of 2,112 square feet (22 feet x 48 feet x 2 stories), resulting in a total value of $323,136 when applying the given rates.
A) $190,068
This option is incorrect as it significantly underestimates the value of the property. The calculation for the square footage alone, at the rate of $153 per square foot, would yield a considerably higher figure.
B) $294,636
While this option approaches the correct value, it still falls short. The calculations based on the square footage and lot value do not support this estimate, as it does not account for the full living area or the lot's contribution effectively.
C) $323,136
This is the correct answer. The appraiser calculates the living area at 2,112 square feet and applies the rate of $153 per square foot, which equals $323,136. Adding the lot value correctly reflects the total estimate of the property.
D) $351,636
This option is incorrect, as it overestimates the value of the property. The calculations do not support this figure, as it exceeds the appropriate valuation derived from the square footage and lot value combined.
Conclusion
The correct estimate of $323,136 reflects the accurate application of the price per square foot multiplied by the living area, plus the lot value. All other options either underestimate or overestimate the value based on the provided data, demonstrating a misunderstanding of the calculation process for property valuation.