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Price Estimation and Down Payment 1478 34th Avenue, San Francisco CA is the addr

ID: 377772 • Letter: P

Question

Price Estimation and Down Payment 1478 34th Avenue, San Francisco CA is the address for a house in San Francisco's Sunset District. The list price is $1,515,000 and the square footage is 2425 square feet. Per sq.footage price Assume that prices have gone for $700.00 per square foot. What would be the estimated actual selling price? How much of a price appreciation would this be over list? Assume the downpayment would be for 20% What would be the estimated downpayment? Use your estimated actual selling price Price Estimation and Down Payment 1478 34th Avenue, San Francisco CA is the address for a house in San Francisco's Sunset District. The list price is $1,515,000 and the square footage is 2425 square feet. Per sq.footage price Assume that prices have gone for $700.00 per square foot. What would be the estimated actual selling price? How much of a price appreciation would this be over list? Assume the downpayment would be for 20% What would be the estimated downpayment? Use your estimated actual selling price

Explanation / Answer

Given Values:

Listed Price = $1,515,000

Total Square footage = 2425 square feet.

Per square footage price = $1,515,000 / 2425 = $624.74 per square foot.

New square footage price = $700 per square foot.

Solution:

a) Estimated actual selling price is calculated as:

Actual selling price = New square footage price x Total square footage

Actual selling price = $700 x 2425 =$1,697.500

Estimated actual selling price is $1,697,500

b) Price appreciation over the listed price is calculated as:

Price appreciation = [(New Price - Listed price) / Listed Price] x 100

Price appreciation = [($1697500 - $1515000) / $1515000] x 100

Price appreciation = ($182500 / $1515000) x 100

Price appreciation = 12.05%

Price appreciation over the listed price is 12.05%

c) Estimated downpayment is calculated as:

Downpayment = 20% of Estimated actual selling price

Estimated actual selling price = $1,697,500

Downpayment = 20% of $1,697,500

Downpayment = $339,500

Dowmpayment to be paid is $339,500

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