California Real Estate Practice Exam

If similar properties have increased by 5% in price since six months ago, and a comparable property sold for $250,000 then, what value would a broker likely put on a similar house now?

1. $250,000

2. $262,500

3. $275,000

4. $300,000

The correct answer is: $262,500

A broker would likely put a value on the similar house at approximately $262,500. This is because the comparable property sold for $250,000 six months ago, and similar properties have increased in value by 5% since then. Option A is incorrect because it does not take into account the increase in property values. Option C is incorrect because it is too high of a value, as the 5% increase would only add an additional $12,500 to the original sale price. Option D is also incorrect because it is significantly higher than both the original sale price and the 5% increase. Overall, option B is the most logical and accurate estimate for the current value of the similar house.