Sarah buys and sells real estate.Two weeks ago,she paid $280,000 for a house on Pine Street,intending to spend $40,000 on repairs sell the house for $350,000.Last week,the city government announced a plan to build a new landfill on Pine Street just down the street from the house Sarah purchased.As a result of the city's announced plan,Sarah is weighing two alternatives: She can go ahead with the $40,000 in repairs and then sell the house for $270,000,or she can forgo the repairs and sell the house as it is for $240,000.Sarah should

Question

Quizplus · Accepted Answer

With the city's plan to build a new landfill just down the street from Sarah's house, the property value is likely to decrease. Therefore, it would not be wise to invest an additional $40,000 in repairs. Selling the house as it is for $240,000 would be the best option and would result in the least amount of loss for Sarah. Keeping the house and living in it is also an option, but it is not clear from the information given whether this is something Sarah would want to do. Option D is not feasible as it would likely be too costly to move the house to a new location.

Sarah Buys and Sells Real Estate