California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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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?

$294,000
$280,000
$287,000
$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