Question

Morgan and Ria are ready to make an offer on an 1800 sqft. home that is priced at $135,000. They investigate other homes on lots of similar size and find the following information:
            A 2400 sqft. home sold for $168,000
            A 1500 sqft. home sold for $106,500
            A 1100 sqft. home sold for $79,000
What offer should they make on the home?

Answer 1

Morgan and Ria are making an offer to buy a home of 1800 sqft at $135000

on investigating further they get various quotations by different seller

now the question is what offer should they make

for analyzing the situation they need to calculate per sqft prices

1) 135000/1800 = $75

2) 168000/2400 = $70

3) 106500/1500 = $71

4) 79000/1100 = $71.18

hence as per the rates $70 per sqft is the most effective accordingly for 1800 sqft they shoul make an offer at 1800*70 = $126000 otherwise if they have budget over $135000 they can go for 2400sqft @ $168000