17. Real Estate Valuation (LO4, CFA2) Using price data from several recent housing transactions in a particular area, Polaris Real Estate Group has identified the main characteristics that affect prices.

The estimated value impact of each characteristic, as well as a standard base price, is as follows:

Characteristic Units Impact Base price $125,000 Living area Square feet $35/square foot Number of bathrooms Number $8,000/bathroom Age of home Years −$6,000/year Using the above values, estimate a price for a five-year-old home that has a living area of 1,500 square feet and two bathrooms.