California Real Estate Practice Exam

If a comparable property sold three months ago for $280,000 and prices in the area have increased 5% in the past six months, what is the indicated value of a similar property?

1. $294,000

2. $280,000

3. $287,000

4. $290,000

The correct answer is: $287,000

A This option is incorrect because it does not take into account the 5% increase in prices in the past six months. B: This option is incorrect because it is the same price as the comparable property sold three months ago, and does not consider the price increase in the area. D: This option is incorrect because it is higher than the price of the comparable property three months ago, but does not account for the 5% increase in prices in the past six months. The correct answer is C because it adds the 5% increase to the original sale price of $280,000, resulting in a value of $294,000. However, since three months have passed since the comparable property was sold, the current indicated value would be slightly lower at $287,000. This takes into account the 5% increase in prices in the area, while also considering the