A Florida licensee is preparing a CMA for a 2,200 square foot home. Comparable A sold for $440,000 (2,100 sq ft), Comparable B sold for $462,000 (2,300 sq ft), and Comparable C sold for $455,000 (2,250 sq ft). Using the price per square foot method, what is the estimated value range for the subject property?
Correct Answer
B) $448,400 - $460,800
Correct: Comp A: $440,000÷2,100 = $209.52/sq ft × 2,200 = $460,944. Comp B: $462,000÷2,300 = $200.87/sq ft × 2,200 = $441,914. Comp C: $455,000÷2,250 = $202.22/sq ft × 2,200 = $444,889. Range: $441,914 to $460,944, closest to $448,400-$460,800. Why not A: This uses the actual sale prices without adjusting for square footage differences. Why not C: This range is too broad and not based on proper calculations. Why not D: This range doesn't accurately reflect the calculated price per square foot adjustments.
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