The range of sale prices for comparable properties is $45,000. If the lowest sale price is $235,000, what is the highest sale price?
Correct Answer
A) $280,000
Range = Highest Value - Lowest Value. Therefore, Highest Value = Range + Lowest Value = $45,000 + $235,000 = $280,000.
Why This Is the Correct Answer
Option A ($280,000) correctly applies the range formula: Range = Highest Value - Lowest Value, which can be rearranged to: Highest Value = Range + Lowest Value. Substituting the given values: Highest Value = $45,000 + $235,000 = $280,000. This demonstrates proper understanding of the mathematical relationship between range, minimum, and maximum values in a dataset.
Why the Other Options Are Wrong
Option B: $190,000
Option B ($190,000) incorrectly subtracts the range from the lowest value ($235,000 - $45,000 = $190,000), which would actually give a value lower than the stated minimum price, making it mathematically impossible.
Option C: $235,000
Option C ($235,000) simply restates the lowest sale price without performing any calculation, failing to account for the range and suggesting no variation in the comparable sales data.
Option D: $45,000
Option D ($45,000) provides the range value itself rather than calculating the highest sale price, demonstrating confusion between the range measurement and the actual highest value in the dataset.
Range Bridge Formula
Remember 'Range is the BRIDGE between Low and High' - Range = High - Low, so High = Low + Range (you cross the bridge by adding the range to the low end to reach the high end)
How to use: When you see a range problem, visualize crossing a bridge from the lowest point to the highest point - the range tells you how far you need to travel (add) to get from low to high
Exam Tip
Always write out the range formula (Range = High - Low) and then algebraically solve for the unknown variable to avoid calculation errors
Common Mistakes to Avoid
- -Subtracting the range from the lowest value instead of adding it
- -Confusing the range value with the actual highest or lowest sale price
- -Forgetting to rearrange the range formula when solving for the highest value
Concept Deep Dive
Analysis
This question tests understanding of basic statistical range calculations, which are fundamental in real estate appraisal for analyzing comparable sales data. The range represents the spread between the highest and lowest values in a dataset, providing insight into market variability and helping appraisers assess the reliability of their comparable sales. Understanding range calculations is essential for statistical analysis of market data and forms the foundation for more complex appraisal adjustments and market analysis techniques.
Background Knowledge
Range is a basic measure of dispersion in statistics that shows the spread of data points by calculating the difference between the maximum and minimum values. In real estate appraisal, understanding range helps appraisers evaluate the consistency and reliability of comparable sales data.
Real-World Application
Appraisers use range analysis when reviewing comparable sales to identify outliers and assess market consistency - a large range might indicate diverse property types or market conditions requiring further investigation
More Math & Stats Questions
A rectangular lot measures 150 feet by 200 feet. What is the area of the lot in square feet?
A property has a potential gross income of $180,000, vacancy and collection loss of 7%, and operating expenses of $65,000. What is the NOI?
What is the mean of the following comparable sales prices: $285,000, $295,000, $305,000, $275,000, and $290,000?
A property generates $120,000 in net operating income and is valued at $1,500,000. What is the capitalization rate?
A building has potential gross income of $180,000, vacancy and collection loss of 8%, and operating expenses of $54,000. What is the net operating income?
A building cost $2,500,000 to construct 8 years ago. Using straight-line depreciation over a 40-year life, what is the current depreciated value?
A commercial property has a potential gross income of $180,000, vacancy and collection losses of $9,000, and operating expenses of $54,000. What is the net operating income (NOI)?
An office building has a gross rental income of $240,000, vacancy rate of 8%, and operating expenses of $75,000. What is the net operating income (NOI)?
A rectangular lot measures 150 feet by 200 feet. What is the area in square feet?
An irregular shaped lot has an area of 87,120 square feet. How many acres is this?
People Also Study
Valuation Principles & Procedures
25% of exam
Property Description & Analysis
20% of exam
Market Analysis & Highest/Best Use
15% of exam
USPAP (Ethics & Standards)
15% of exam
Report Writing & Compliance
10% of exam
Related Tools
Previous Question
A triangular lot has a base of 120 feet and a height of 80 feet. What is the area in square feet?
Next Question
In a paired sales analysis, two similar properties sold within the same time period. Property A (with a pool) sold for $385,000, and Property B (without a pool) sold for $365,000. What is the indicated adjustment for a swimming pool?