Question

Two houses were built on two adjacent lots of equal value. Construction costs and maintenance were the same. One house is appraised to be of higher value. What is most likely the reason?

Answer 1

The most likely reason for one house being appraised at a higher value than the other is the socio-economic status of the people living in those houses.

Step-by-step explanation:

The most likely reason for one house being appraised at a higher value than the other, even though the construction costs and maintenance were the same, is the socio-economic status of the people living in those houses. Neighborhoods often house people of similar income and education levels, so it is likely that the house with the higher value is occupied by a wealthier family, while the other house may be occupied by a family with lower socio-economic standing.