Module 14

Susie purchased a home for $130,000 last year that has appreciated 6%. What is the current value? $137,800 $131,200 $122,200 $153,400

1 $130000 x .06 = $7800, $130000 + $7800 = $137800

A landlord required a first month's payment of rent and cleaning deposit that equaled 150% of the monthly rent. If the total payment was $1,850 how much was the rent? $1,233.33 $1,200.00 $925.00 $616.67

1 1850/1.5

A lender is offering insured conventional financing that requires a 15% down payment. A prequalified buyer has $30,000 cash available. How much can he spend for a house? $200,000 $34,500 $35,294 $230,000

1 30000/.15

A lender is offering insured conventional financing that requires a 15% down payment. A prequalified buyer has $30,000 cash available. How much can he spend for a house? $200,000 $35,294 $230,000 $34,500

1 30000/.15

A twenty-year-old bi-level is currently valued at $575,000. The property has appreciated a total of 22% due to market fluctuation. What was the original purchase price of the home? $471,312 $173,179 $261,363 $513,392

1 Base number x 122% = $575,000, b x 1.22 = $575,000, b = $575,000 / 1.22, b = $471,312

Whitney and Colleen purchased their property three years ago for $289,000. They are now planning to sell and were disappointed to learn from their real estate agent that they can expect an offer of about $219,000 due to an extended economic downturn that began two years ago. What is the percentage loss in value to the property owners since their purchase? 24% 22% 32% 28%

1 Take the difference between the two numbers ($70,000) and divide that by $289,000 to derive 24.22% rounded to 24%

A 40 x 53 square foot ranch is located on 3/8th of an acre. What approximate percentage of the property is NOT taken up by the house? 52.5% 87% 13% 83%

2

A property listed on an internet auction web site had a minimum reserve of $160,000, which is the price not revealed to online bidders. After the bidding opened, the offers exceeded the reserve, and the property eventually sold for $174,400. What percent of increase did the sellers receive over their reserve price? 8.26% 9.00% 10.00% 11.10%

2 $174,400 − $160,000 = 14,400 / $160,000 = 0.09 or 9% increase

A purchaser placed 20 percent down on a commercial property and needed a $600,000 loan to close escrow on the transaction. What was the purchase price? $2,400,000 $750,000 $480,000 $720,000

2 $600,000 loan / 0.80 LTV = $750,000 purchase price

A dental surgery clinic purchased a site for their new two-story facility. One of the attractive features of the site was the wetlands, although the setback requirements together with the necessary parking spaces limit the building footprint (or foundation) to 15% of the land area. If the site is one acre, what is the maximum size for the building? 8,712 sq. ft. 13,068 sq. ft. 6,534 sq. ft. 5,554 sq. ft.

2 (43,560 x .15) x 2 = 13,068 sq.ft.

A client offered a $500 bonus to complete an assignment on a rush basis. If the total fee was $2,850 what was the bonus percent? 18.00% 17.54% 17.00% 5.70%

2 500/2850

Michael bought a home for $75,000. The sales price was discounted 15% as it was a sale between family members. What was the original sales price? $112,500 $88,235 $63,750 $91,764

2 Base number x 85% = $75,000, b x 0.85 = 75,000, b = 75,000 / 0.85, b = $88,235

A realtor had a home on the market 371 days before reducing the list price to $209,900. The property was originally listed for $235,900. What is the price discount expressed as a percentage? 10.5% 89% 11% 40.5%

3 $235900 - $209,900 = $26000, $26,000 / 235900 = 0.11 = 11%

A developer purchased a property for $200,000. He spent $50,000 on the renovation. He sold the property for $370,000. What is the percentage of profit? 40% 35% 48% 22%

3 $370,000 - ($200,000 + $50,000) = $120,000, $120,000 / $250,000 = 0.48 = 48%

The median sale price for a duplex in a Midwestern community is $200,000. Two years ago the median price was $167,500. What is the change in the median price as a percent? 16.00% 19.50% 19.40% 16.25%

3 ($200,000 - $167,500)/$167,500 = 19.4%

A two-story dwelling sold for 8% less than its list price. If its sales price was $220,000, what was the listing price? $115,789 $275,000 $239,130 $176,000

3 100% - 8% = 92, base number x 92% = $220,000, b x 0.92 = $220,000, b = $220,000 / 0.92, b = $239,130

Andrew and Jill recently purchased some property in New Valley and wish to build a ranch on a slab foundation. What is the maximum square footage they can obtain if the lot is 65 feet wide and 130 feet deep and has the following setbacks: 25 feet on the front, 15 feet on the rear, and 10 feet on the sides? 8,450 sq. ft. 2,750 sq. ft. 4,050 sq. ft. 4,950 sq. ft.

3 130 25 15 = 90, 65 10 10 = 45, 90 * 45 = 4050 square feet

Evan would like to at least break even on the sale of his home. He originally paid $200,000. Additionally, he will pay $6,200 in closing costs and 5% in real estate commission. What is the minimum amount for which he must sell? $210,526 $195,890 $217,053 $224,000

3 Base number x 95% = $206,200, b x 0.95 = $206,200, b = $206,200 / 0.95, b = $217,053

Two years ago Alex had a property tax bill of $2,250. The next year it increased by 8% and the year after that he received another 9% increase. What is the current property tax considering the increases over the last several years? $2,430 $2,632 $2,649 $2,441

3 $2,250 x 1.08 = $2,430 x 1.09 = $2,648.70 rounded to $2,649

Scott and Linda have decided to sell their home. They purchased the property 12 years ago for $250,000. Sales commission and other closing cost will be 15% of the sales price. To break even, how much would the home's value have needed to appreciate? $37,500 $25,000 $66,667 $44,118

4

An investor purchased three acres of commercial land. He plans to build a 64,000 square foot strip mall at that location. What percentage of the site will the building occupy? 46.8% 20.4% 43.9% 49%

4 1 acre = 43560 square feet, 3 x 43560 = 130680, 64000 / 130680 = 0.49 = 49%

The Smiths purchased a home twp years ago for $150,000. A current appraisal valued the property at $135,000. What is the average decline per year? 3.0% 10.0% 7.5% 5.0%

4 15000 = 10%; 10% / 2 = 5%

If a one-acre parcel sells for $2.25 per square foot, what is the sale price? $19,360 $102,060 $98,000 $98,010

4 43560 X 2.25

8,000 is 8% of what number? 20,000 10,000 80,000 100,000

4 8000 / 0.08 = 100,000