California Real Estate Practice Exam

What is the estimated reproduction cost of a 2,500 square foot house similar to a 2,600 square foot house that cost $338,000 to build?

1. $325,000

2. $338,000

3. $350,000

4. $310,000

The correct answer is: $325,000

Based on the given information, we can deduce that the cost of building a 2,600 square foot house is $338,000. To estimate the cost of building a 2,500 square foot house, we need to take into account the difference in size between the two houses. The estimated reproduction cost of a 2,500 square foot house would be less than $338,000 because it is smaller in size. Option B is the exact cost of building a 2,600 square foot house and does not take into account the decrease in size for the 2,500 square foot house. Option C is higher than the cost of building the 2,600 square foot house and is therefore not a reasonable estimate. Option D is significantly lower than the cost of building the 2,600 square foot house and does not accurately reflect the cost of building the 2,500 square foot house. Overall, option A provides the most accurate and reasonable estimate for the reproduction cost of a 2,500 square foot house similar to a 2,600 square foot house that cost $338,000 to build.