A comparable sold for $285,000 and contains 1,900 square feet of gross living area. The subject contains 2,050 square feet. What is the comparable’s price per square foot?
Correct Answer
A) $150.00
Why this is correct: a comparable’s price per square foot is its own sale price over its own gross living area. Calculation: $285,000 ÷ 1,900 = $150.00. Why the other choices are wrong: $139.02 divides by the subject’s 2,050 square feet, which describes neither property; $142.50 and $158.33 divide by a rounded 2,000 and by 1,800, neither of which is the comparable’s actual area.
Why This Is the Correct Answer
Why this is correct: a comparable’s price per square foot is its own sale price over its own gross living area. Calculation: $285,000 ÷ 1,900 = $150.00. Why the other choices are wrong: $139.02 divides by the subject’s 2,050 square feet, which describes neither property; $142.50 and $158.33 divide by a rounded 2,000 and by 1,800, neither of which is the comparable’s actual area.
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