Maine Real Estate MATH SECTION

What is the current depreciated value of a commercial property that was purchased 22 years ago for $164,500 and has a useful life of 60 years? (Round your answer to the nearest whole dollar.)

$104,183

Of the following transactions, which will result in the greatest net proceeds to the seller? A. Sale Price - $110,000; Commission Paid - 7%; Closing Costs - $1,280B. Sale Price - $106,000; Commission Paid - 4%; Closing Costs - $820C. Sale Price - $108,000; Commission Paid - 6%; Closing Costs - $1,308D. Sale Price - $105,000; Commission Paid - 3%; Closing Costs - $980

$110,000 - 7% = $102,300 - $1,280 = $101,020

A property has a 7.5% return and a monthly net income of $810. The estimated property value is:

$129,600.00

Al paid $300,000 for 10 acres of land. He wants to buy an additional parcel that contains 21,780 square feet for the same price. How much should he pay for it?

$15,006

An appraiser is using the cost approach to find the value of a unique home. The house measures 75 feet by 150 feet and the square foot method shows a current construction cost of $225 per square foot. Since it was built the improvements have depreciated 1.5%. If the land is valued at $265,000 what is the value of the property?

$2,758,281.25

Ms. Taylor's annual tax bill is $2,340. Properties are assessed at 80% of the market value and the local tax rate is $2.22 per hundred. What is the market value of the property?

$2.22 divided by $100 = 0.0222 Tax Rate $2,340 Annual Taxes divided by 0.0222 Tax Rate = $105,405.41 Assessed Value $105,405.41 divided by 80% = $131,756.76 Market Value

Today a house sold for $250,000. Ten years ago the buyers paid $175,900. What was the percentage of profit?

$250,000 - $175,900 = $74,100 What You Made $74,100 What You Made divided by $175,900 What You Paid = 0.42126 or 42.13% Profit

LaBoo's selling expenses were as follows: 7% brokerage commission; $150,000 mortgage payoff; $95 deed preparation; $858 transfer taxes; and since taxes were paid in advance, she received tax credit of $1,325. She left the closing table with a check for $100,047. What was the sale price of the property?

$268,467.74

The buyer made an offer of 95% of the listed price of $275,000. The offer was accepted and the buyer had a $50,000 down payment. The buyer and seller agreed to split the 3 discount points that was charged on the loan. The buyer paid a 1% origination fee. How much did the buyer pay in points and the origination fee?

$275,000 x 95% = $261,250 Sale Price $261,250 - $50,000 = $211,250 Loan $211,250 x 3% = $6,337.50 Discount Points $6,337.50 divided by 2 = $3,168.75 Discount Points paid by buyer $211,250 x 1% = $2,112.50 Origination Fee paid by buyer $3,168.75 $2,112.50 = $5,281.25 Fees paid by buyer

The pay check stubs reveal that Mr. Lambert's gross monthly income is $7,000 per month and Mrs. Lambert's gross monthly income is $7,000 per month. One car payment is $450 and the second car payment is $500. Their credit cards payments are $350, $300 and $250. Estimated annual taxes on the house they want to purchase are $5,000 and the homeowner's insurance policy is $750. If they negotiate a conventional loan, what is their maximum principal and interest payment?

$3,190

Bob joined Townshore Realty which pays any fees the brokerage earns on a 50/50 split with its agents. Townshore offers a 60/40 co-broker fee to other agencies in its marketplace. Sally listed a property for $240,000 and agreed to a 5% commission. The property sold for 90% of the listed price. A co-broke fee was paid to PDQ Realty that brought the buyer. How much was Sally's commission check?

$3,240

Ms. Cochran bought a home for $155,000. She obtained a 80% mortgage at a rate of 4.5% for 30 years. Other expenses include title insurance of $399, 3 discount points, 1.5% origination fee, and attorney fees of $350. Taxes are $1,999 for the year and they have been paid. If the closing takes place on August 6, how much money does Ms. Cochran need to bring to the closing if her earnest money check was $5,000? (Use a calendar year and the seller is responsible for the day of closing.)

$33,133.10 $155,000 Sale Price x 80% LTV = $124,000 LoanDown payment is $31,000.$124,000 Loan x 4.5% Interest = $5,580 Annual Interest$5,580 divided by 365 = $15.29 per dayAugust 6 through August 31 = 26 days$15.29 x 26 days = $397.54 Interest to be Paid at Closing$124,000 Loan x 3% Discount Points = $3,720 Discount Points$124,000 Loan x 1.5% Origination Fee = $1,860 Origination Fee$1,999 divided by 365 = $5.4767 or $5.48 Daily Tax RateThe buyer will owe the seller for taxes from August 7 through December 31.August 7 through August 31 = 25 daysSeptember through 30 days; October through 31 days; November through 30 days; December 31 days = 147 days$5.48 x 147 days = $805.56 Debit Buyer, Credit Seller for TaxesDebits: $397.54 Interest $3,720 Discount Points $1,860 Origination Fee $805.56 Taxes $350 Attorney $31000 down payment = $38,133.10Credits: $5,000 Earnest Money = $129,00038133.10 - 5000 = $33,133.10

A house originally cost $275,000 has appreciated 5% each year for the past 4 years. What is the value of the property?

$334,264.22

John is selling his rental property to Jack. The monthly income is $1,000 per month. The closing is June 20 and the buyer is to receive the rent for that day. The entries on the settlement statement will be:

$366.66 Debit Seller, Credit Buyer

XYZ Realty policy manual shows the following compensation structure: Commission rate charged - 6% to XYZ Realty; 50% to the listing agent. If sold by another company, the commission is split equally. An agent from ABC Realty secured the buyer. Her company policy is, that as the selling agent, she will be paid 40% of her broker's share. If the sales price of the house was $395,000, how much does each party receive?

$395,000 x 6% = $23,700 Total Commission $23,700 ÷ 2 = $11,850 Split between the two companies $11,850 x 50% = $5,925 to Listing Broker and $5,925 to Listing Agent $11,850 x 60% = $7,110 to Selling Broker $11,850 x 40% = $4,740 to Selling Agent

A property sold for $235,349 and the transfer tax was $3.25 per $1,000. How much did the seller pay in transfer taxes?

$767.00

A seller wanted to net $105,000. He agreed to pay a 7% commission. He had a mortgage payoff of $50,000. The property must sell for what amount for him to accomplish his goal?

100% - 7% = 93%$105,000 $50,000 = $155,000$155,000 divided by 93% = $166,666.67

Mr. Jones sold his lot which measures 100' x 125'. If the sale price was $139,000, what was the cost per square foot?

100' x 125' = 12,500 square feet $139,000 ÷ 12,500 = $11.12 per square foot

A rectangular lot with 80 feet of frontage has adjoining rectangular lots of equal 160 feet depth on each side. One of these side lots contains 12,800 square feet, and the other has 9,600 square feet. How many front feet are in the combined three lots?

220 Front Street

A 100-acre parcel is to be subdivided. Seventeen percent of the land will be utilized for streets. The lots are 80' x 120'. How many lots will be in the subdivision?

376 lots

Andrea bought a property with a 20% down payment for a 30 year loan at 7% interest. If her first month's interest was $787.50, what was the amount of her loan?

B. $135,000

Eighteen months ago Mr. and Mrs. Lambert purchased a home for $750,000. They made $250,000 in renovations, and then Mr. Lambert was transferred. Today, the home sold for $1,100,000 and they paid the brokerage a 5% commission. How much capital gains can they defer?

They cannot defer any capital gains because they have not owned the property two out of the last five years

As a tax unit, a mill is:

a tenth of a cent.

Builders' blueprints frequently use the scale of ¼ inch equals 1 foot. A floor plan shows a family room 10½ inches by 3½ inches. How much will it cost to tile the family room if the tile cost at $7.60/square yard?

¼ inch = 1 foot, so 1 inch = 4 feet 10.5' x 4' = 42 feet 3.5' x 4' = 14 feet 42 feet x 14 feet = 588 square feet ÷ 9 = 65.33 square yards 65.33 x $7.60 = $496.51