Lucky Louie is putting together an offer on a previously owned home he wants to buy.The home has 2,200 square feet of living space and is priced at $225,000. Upon his inspection,the condition of the roof is not good,and the central air system is on its last leg.Louie estimates replacement costs for these two systems to be a minimum of $17,000.Recent comps in the neighborhood show a 2,400 square foot house in good condition having sold for $245,000 just one month ago.What should Louie offer?

Question

Quizplus · Accepted Answer

To determine the offer price, first, we need to subtract the estimated cost of repairs from the asking price:

$225,000 - $17,000 = $208,000

Next, we need to compare the home to recent comps in the neighborhood to see if the offer is reasonable. Since the home has less square footage than the recent comp, and has major repairs needed, the offer of $208,000 is reasonable.

Therefore, the best choice is C) $208,000.

Lucky Louie Is Putting Together an Offer on a Previously