Question

A salesperson has found a 1,800 square foot house that meets his buyer's requirements except that its roof needs repair and the house needs painting. The salesperson obtains estimates of $2,200 for roof repairs and $4,800 for painting. If comparable houses sell for $65 per square foot, how much should the buyer offer for this house? Select one:

a. $110,000
b. $112,200
c. $114,800
d. $117,000

Answer 1

The buyer should offer $110,000 for the house.

Step-by-step explanation:

To calculate how much the buyer should offer for the house, we need to determine the value of the house after accounting for the repair and painting costs. The house is 1,800 square feet, and comparable houses sell for $65 per square foot. So, the initial value of the house is 1,800 * $65 = $117,000.

The repair cost is $2,200 and the painting cost is $4,800, totaling $7,000. To find the final offer price, we subtract the cost of repairs from the initial value: $117,000 - $7,000 = $110,000.

Therefore, the buyer should offer $110,000 for this house, which is option a.