Real Estate Math Review

A buyer is attempting to qualify for a conventional loan to purchase a house. His current income is $4800 per month and his recurring monthly debt is $500. The anticipated housing expense is $1300. Under which rule would he qualify? I. Housing 28% II. Total Debt 36%

• I. only

• II. only

• Both

• Neither

An appraiser is trying to determine the value of a subject property and has found 3 comps. Using the information provided what will be the indicated value of the subject?

Subject: 1400 sq ft, 2 bath, 2 car garage

Comp 1: 1300 sq ft 2 bath 1 car garage Sold $150,000

Comp 2: 1300 sq ft 2 bath 2 car garage Sold $160,000

Comp 3: 1400 sq ft 2 bath 1 car garage Sold $155,000

• $160,000

• 162,500

• 159,500

• 165,000

Bill purchases a property for $350,000 with an assessed value of $315,000 and a property tax rate of $1.14 in NC. Closing occurs on Oct 11 and taxes have been paid by the seller. What would be the entry on the settlement statement for prorated taxes, rounded to the nearest dollar?

• Debit Seller/Credit Buyer $3,132

• Debit Seller/Credit Buyer $2,803

• Debit Buyer/Credit Seller $858

• Debit Buyer/Credit Seller $788

A house sold fro $137,500 and the buyers secured an FHA mortgage. The required down payment was 3% for the first $50,000 and 5% for the remaining amount. What was the amount of the mortgage?

• $1,500

• $4375

• $133,125

• $131,625

A broker pays her salespeople 20% of the commission for listing property and 40% of the commission for selling it. The commission rate is 5%. What was the selling price of a house if the salesperson who both listed and sold it received $3600?

• $120,000

• $200,000

• $7,200

• $100,000

The ABC Real Estate Company listed a property at $4.50 per sq ft. The land dimensions were 50 Ft by 137 Ft. If the commission rate was set at 7.25%, how much did the seller pay the ABC Real Estate Company?

• $1,005.50

• $2,234.81

• $22,348.12

• $10,055.00

Under a percentage lease, the lessee pay $400 per month plus 2.75% of gross sales. Last month's gross sales were $198,210. How much is the rent?

• $5450.78

• $5850.78

• $5540.78

• $5580.78

The market value of a property is $72,000, and it is assessed at 67% of value. What are the monthly taxes if the tax rate for the area is $6.50 per $100 of the assessed value?

• $3,157.38

• $4,857.50

• $261.30

• $485.75

A $50,000 mortgage on a property represents an 80% LTV ratio. The real estate was assessed at 82%, the taxes were based on $4 per $100 of assessed value, and the owners paid $2,050 annual property taxes. What was the sale price of the home?

• $62,500

• $51,250

• $41,000

• $50,000

A home sells for $65,900. The mortgage requires a 40% down payments, a 1 % origination fee, and $450 in closing costs. How much does the buyer need to close?

• $26,623.60

• $27,205.40

• $27,173.59

• $26,360.00