National Practice “Math” Questions
(Questions ONLY, ANSWERS WILL BE REVEALED WITH PROPER SUBSCRIPTION)
1) Jamie Spiffup advised her clients they needed to paint their living room before showing the property. The walls of these rooms were all 10’ high. The wall lengths were 16’, 20’, 16’, and 20’. If a gallon of paint covers 200 SF, how many whole gallons would the sellers have to buy?
A. 2
B. 3
C. 4
D. 5
2) A rancher has a rectangular 40 acre piece of property fronting a highway. He wants to put a barbed-wire fence along his road frontage. How much fence does he need if his property depth is 1,200’?
A. 1,200’
B. 4,173′
C. 1,612′
D. 1,452′
National Practice
3) What is 75% converted to a decimal?
A. 75.0
B. 7.50
C. 0.75
D. 0.075
4) Calculate how many acres are in the Southwestern 1/4 of the Northern 1/2 of the Eastern 1/2 of Section 14.
A. 20
B. 40
C. 80
D. 120
5) Two parcels of land priced at $1,500 per acre were purchased. One parcel was 25 acres in size and the other was 1 mile square in size. How much did these two parcels cost together?
A. $965,000
B. $979,500
C. $997,500
D. $960,000
6) Stacey owns a lot that has 180 feet of front footage and contains 36,000 square feet. She purchases two lots adjacent to each side of his lot. These side lots are each 200 feet deep and contain 19,000 square feet. What is the total front footage of all three lots?
A. 190
B. 200
C. 275
D. 370
7) If a square-shaped lot measures 200’ on one side, what is the square footage of the lot?
A. 4,000
B. 40,000
C. 400
D. 40
8) Andre owned a 1/4 acre lot. He wanted to construct a 120’ x 80’ tennis court on the lot. How many square feet will remain uncovered after he builds the tennis court?
A. 1,290 SF remaining
B. 2,580 SF
C. 9,600 SF
D. The court will not fit on the lot.
9) An investor just purchased a rectangular 1-acre retail lot for $250 a frontage foot. If she paid $100,000 total, what was the depth of the lot?
A. 109 feet
B. 400 feet
C. 174 feet
D. 250 feet
10) If a rectangular house is 50 feet wide and contains 2,500 sq/ft, what is its depth?
A. 100’
B. 75’
C. 50’
D. 125’
11) A commercial builder has a downtown lot with 250 frontage feet on Broadway. The lot is 200’ deep. By code, the builder must allow for a 15’ setback on Broadway, and 10’ on both sides of the lot. How many square feet does the builder have left to build on?
A. 46,000 SF
B. 50,000 SF
C. 42,300 SF
D. 42,550 SF
12) A comparable property has 4 bedrooms and the subject has 3 bedrooms. If bedrooms are valued at $30,000, how would you adjust a CMA to account for this?
13) An apartment building that sold for $450,000 had an annual income of $62,500. What is its gross income multiplier?
14) A rental house has monthly gross income of $1,200. A suitable gross rent multiplier derived from market data is 117. What estimated sale price (to the nearest $1,000) is indicated?
15) A property is being appraised by the cost approach. The appraiser estimates that the land is worth $10,000 and the replacement cost of the improvements is $75,000. Total depreciation from all causes is $7,000. What is the indicated value of the property?
16) A property is purchased for $200,000. Improvements account for 75% of the value. Given a 39-year depreciation term, what is the annual depreciation expense?
A. $3,846
B. $5,128
C. $6,410
D. $8,294
17) If gross income on a property is 30,000, net income is $20,000 and the cap rate is 5%, the value of the property using the income capitalization method is
A. $600,000.
B. $400,000.
C. $6,000,000.
D. $4,000,000.
18) A property is being appraised using the income capitalization approach. Annually, it has potential gross income of $30,000, vacancy and credit losses of $1,500, and operating expenses of $10,000. Using a capitalization rate of 9%, what is the indicated value (to the nearest $1,000)?
A. $206,000
B. $167,000
C. $222,000
D. $180,000
19) A building has 5 office suites generating annual potential rent of $20,000 each. If the annual vacancy rate is 10% and the annual expenses are $45,000, what is the NOI?
20) A property is being appraised by the cost approach. The appraiser estimates that the land is worth $32,000 and the replacement cost of the improvements is $220,000. Total depreciation from all causes is $44,000. What is the indicated value of the property?
A. $176,000
B. $296,000
C. $208,000
D. $252,000
21) A property is being appraised using the income capitalization approach. Annually, it has potential gross income of $40,000, vacancy and credit losses of $3,500, and operating expenses of $16,000. Using a capitalization rate of 8%, what is the indicated value (to the nearest $1,000)?
A. $300,000
B. $256,000
C. $456,000
D. $500,000
22) A house is being appraised using the sales comparison approach. The house has four bedrooms, three bathrooms, and no pool. The appraiser selects a comparable house that has three bedrooms, three bathrooms, and a pool. The comparable house just sold for $280,000. A bedroom is valued at $18,000, and a pool at $15,000. Assuming all else is equal, what is the adjusted value of the comparable?
A. $313,000
B. $277,000
C. $280,000
D. $283,000
23) A property’s value is $400,000 and its land value is $75,000. Assuming a depreciation term of 39 years, what is the amount of annual depreciation?
A. $10,256
B. $1,923
C. $8,333
D. $7,875
24) The subject property has a no pool and a $5,000 screen porch. A comparable property that sold for $300,000 has no porch, one less $9,000 bathroom, and a small $4,000 pool. Assuming all else is equal, what is the adjusted value of the comparable?
A. $310,000
B. $318,000
C. $300,000
D. $292,000
25) The owner of a $200,000 property decided to buy a new $15,000 roof (which added no value to the property). The economic life of the roof is 12 years. Assuming the straight-line method of depreciation, what is the depreciated value of the property (attributable to the roof) after 2 years?
A. $202,500
B. $200,000
C. $197,500
D. $187,500
26) What is the GIM of a gas station with Annual rent of $104,400 and a value of $970,000?
A. 8.3
B. 9.3
C. 10.3
D. 99.9
27) What is the GRM of a condominium with monthly rent of $1,700 and a value of $240,000?
A. 70.8
B. 112.5
C. 141.2
D. 88.5
28) What is the GIM of a strip mall with annual income of $547,500 and a value of $6,345,000?
A. 8.6
B. 139.1
C. 103.2
D. 11.6
29) The subject property does not have a pool or a screen porch. A comparable that sold for $205,000 has a $1,000 screen porch, one more $2,500 half-bathroom, and a $6,000 pool. Assuming all else is equal, what is the adjusted value of the comparable?
A. $200,500
B. $195,500
C. $214,500
D. $207,500
30) A property has a net income of $770,000 and sells for $9,800,000. What is its cap rate?
A. 0.079
B. 0.127
C. 0.092
D. 0.113
31) A building has 7 office suites generating annual potential rent of $9,000 each. Vacancy = 8% and annual expenses are $25,000. Vending machines yield $3,000. What is the NOI?
A. $63,000
B. $35,960
C. $32,960
D. $66,000
32) A property is being appraised by the cost approach. The appraiser estimates that the land is worth $32,000 and the replacement cost of the improvements is $220,000. Total depreciation from all causes is $44,000. What is the indicated value of the property?
A. $176,000
B. $296,000
C. $208,000
D. $252,000
33) A borrower pays $1,000 for a $50,000 loan. How many points are paid?
34) A borrower pays 2 points on a $40,000 loan. What is the fee paid?
35) A borrower has a $500,000 interest only loan @ 5% interest. What are the annual and monthly payments?
36) The loan officer at FirstOne Bank tells Amanda she can afford a monthly payment of $1,300 on her new home loan. Assuming this is an interest-only loan, and the principal balance is $234,000, what interest rate is Amanda getting?
37) The Kruteks obtain a fixed-rate amortized 30-year loan for $280,000 @ 6.25% interest. If the monthly payments are $1,724, how much interest do the Kruteks pay in the second month of the loan?
38) A borrower obtains a loan for $200,000 with a 4.3207 constant. What is the monthly payment?
39) A borrower obtains a 5-year interest only loan of $20,000 @ 7%. How much interest will he or she pay?
40) A mortgage lender uses an income qualification ratio of 28% of monthly Principal, Interest, Taxes, and Insurance (PITI) payment. The Poormons earn $82,000 per year. If annual taxes are estimated to be $6,000 and insurance $1,200 (totaling $7,200 a year or $600 a month), how much can the Poormons afford to pay per month for the loan by itself without the additional cost for Taxes and Insurance?
41) A lender offers an investor a maximum 70% LTV loan on the appraised value of a property. If the investor pays $230,000 for the property, and this is 15% more than the appraised value, how much will the investor have to pay as a down payment?
42) Assume FHA qualifies borrowers based on a 41% debt ratio, meaning that the borrower’s total monthly debt including the loan, taxes, insurance and non-housing debt cannot exceed 41% of the borrower’s monthly income. If a borrower grosses $4,000 per month and pays $600 monthly for non-housing debt obligations, what monthly payment for housing expenses can this person afford based on this ratio?
43) *edited out
44) A borrower obtained an 70% loan for $600,000. What was the price of the home (to the nearest thousand)?
A. $420,000
B. $857,000
C. $750,000
D. $769,000
45) *edited out
46) A borrower has a monthly payment of $1,980 on a loan with a monthly constant of 6.45. What is the loan amount (to the nearest hundred)?
A. $354,800
B. $283,300
C. $198,000
D. $307,000
47) A lender uses a 39% debt ratio. A borrower earns $40,000 / year and has monthly non-housing debt payments of $700. What housing payment can she afford?
A. $600
B. $700
C. $900
D. $1,300
48) *Edited out
49) A home buyer pays $1,800 / month for the interest-only loan on his new house. The loan’s interest rate is 6%. If he obtained a 80% loan, what was the purchase price?
A. $216,000
B. $275,000
C. $450,000
D. $360,000
$1,800 x 12 = $21,600, $21,600 ÷ 0.06 = $360,000, $360,000 ÷ 0.80 = $450,000
50) A borrower has a $770,000 interest-only loan @ 5.5% interest. What are the monthly interest payments?
A. $4,235
B. $1,855
C. $3,529
D. $3,111
51) Jerry recently obtained an 75% loan on his $410,000 home, and he had to pay $5,600 for points. How many points did he pay?
A. 1.4 points
B. 1.8 points
C. 5.6 points
D. 2.8 points
52) Laura obtains a new loan @ 67% of her home’s price of $300,000. The loan constant is 6.321. What is Laura’s monthly payment?
A. $1,896
B. $1,270
C. $1,565
D. $2,830
53) The Browns obtain a fixed-rate amortized 30-year loan for $310,000 @ 6% interest. If the monthly payments are $1,815, how much interest do the Browns pay in the first month of the loan?
A. $1,815
B. $1,550
C. $265
D. $1,495
54) Steve is buying Darryl’s house for $360,000. Steve’s loan amount is $275,000. He has agreed to pay 2 points at closing. How much will Steve pay for points?
A. $3,500
B. $7,200
C. $5,500
D. $6,200
55) A lender determines that a homebuyer can afford to borrow $160,000 on a mortgage loan. The lender requires an 80% loan-to-value ratio. How much can the borrower pay for a property and still qualify for this loan amount?
A. $180,000
B. $128,000
C. $200,000
D. $168,000
56) Jackie obtains a 60% LTV loan on her new $250,000 home with an annual interest rate of 5.5%. What is the first month’s interest payment?
A. $688
B. $1,146
C. $458
D. $750
57) Ginnie has an interest-only home equity loan at an annual interest rate of 7%. If her monthly payment is $1,458, how much is the loan’s principal balance?
A. $208,300
B. $102,060
C. $225,000
D. $250,000
58) A loan applicant has an annual gross income of $76,000. How much will a lender allow the applicant to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 30%?
A. $2,280
B. $2,400
C. $2,700
D. $1,900
59) A homeowner paid $185,000 for a house three years ago. The house sells today for $239,000. By what percent has the property appreciated?
60) A property sells for $180,000 one year after it was purchased. If the annual appreciation rate is 10%, how much did the original buyer pay for it?
61) An office building has $300,000 net income and sold for $4,800,000. What was the rate of return?
62) An office building has $400,000 net income and a cap rate of 8.25%. What is its value?
63) Yvonne bought a home in Biltmore Estates 3 years ago for $250,000. She obtained an 80% loan. Over the past three years, the total appreciation rate has been 18%, and she has paid down her loan by $4,000. What is Yvonne’s equity after this period?
64) Using the terms Potential Gross Income, Vacancy, Other Income, Operating Expenses, and Gross Operating Income, express the equation for Net Operating Income.
65) Describe the difference between NOI and cash flow.
66) An investor sold a property for $3 million and incurred $300,000 in selling costs. He originally paid $2.4 million 3 years ago and has depreciation expense totaling $150,000. What was his capital gain?
67) Mary Bright bought a home for $120,000, paying $24,000 down and taking a mortgage loan of $96,000. The following year she had a new roof put on, at a cost of $5,000. What is Mary’s adjusted basis in the house if she now sells the house for $150,000?
68) An investor pays $300,000 for a property, $50,000 of which is land, puts $50,000 capital improvements into it, and borrows $250,000 to finance the property. What is the property’s depreciable basis?
69) A principal residence is bought for $180,000. A new porch is added, costing $7,000. Five years later the home sells for $220,000, and the closing costs $18,000. What is the homeowner’s capital gain?
70) An income property has a net income of $20,000, interest expense of $12,000, cost recovery (depreciation) of $3,000, and a tax rate of 28%. What is its income tax liability?
71) An investment property generates a cash flow of $50,000 and appraises for $700,000. What is the owner’s return on investment?
72) An investment property generates a cash flow of $200,000. The owner has $450,000 equity in the property. What is the owner’s return on equity?
73) An apartment complex generates $778,000 in effective rental income and $7,000 in other income. The same complex has $378,000 in operating expenses and $12,000 as reserves. What is the net operating income of the complex?
A. $395,000
B. $407,000
C. $400,000
D. $387,000
74) An investment property generates a cash flow of $420,000 and appraises for $8,800,000. What is the owner’s return on investment?
A. 0.048
B. 0.209
C. 0.084
D. 0.098
75) An office building sells for $979,000 at a cap rate of 8.3%. What is its NOI?
A. $97,900
B. $85,173
C. $92,772
D. $81,257
76) A principal residence is bought for $110,000. A new garage is added, costing $21,000. Seven years later the home sells for $185,000, and the closing costs are $10,000. What is the homeowner’s capital gain?
A. $175,000
B. $65,000
C. $54,000
D. $44,000
77) A principal residence is bought for $190,000. A new porch is added, costing $9,000. Five years later the home sells for $261,000, and the closing costs are $21,000. What is the homeowner’s capital gain?
A. $50,000
B. $62,000
C. $71,000
D. $41,000
78) An apartment complex generates $335,000 in effective rental income and $2,500 in other income. The same complex has $144,000 in operating expenses and $116,000 in debt service payments. What is the pre-tax cash flow of the complex?
A. $75,000
B. $77,500
C. $193,500
D. $337,500
79) A condominium unit has $30,000 net income and sold for $500,000. What was the rate of return?
A. 0.05
B. 0.06
C. 0.075
D. 0.09
80) A property’s return on equity ratio is 28% and generates a cash flow of $70,000. How much equity does the owner have (to the nearest hundred)?
A. $216,700
B. $18,900
C. $235,000
D. $250,000
81) Brittany bought a house five years ago for $100,000 and obtained an 80% loan. Now the home is worth $125,000, and her loan balance has gone down $5,000. What is Brittany’s current equity?
A. $125,000
B. $75,000
C. $50,000
D. $45,000
82) A building generates $87,000 NOI after expenses and has a debt payment of $33,000. What is its cash flow?
A. $54,000
B. $87,000
C. $120,000
D. $38,000
83) An investment property’s return on equity ratio is 15% and the owner has $85,000 of equity. What is the property cash flow?
A. $10,200
B. $12,750
C. $566,667
D. $708,333
84) A home that was purchased for $440,000 with a $320,000 loan is now worth $530,000. The current loan balance is $280,000. What is the homeowner’s equity?
A. $120,000
B. $160,000
C. $250,000
D. $280,000
85) An investment property generates a cash flow of $40,000. The owner has $360,000 equity in the property. What is the owner’s return on equity?
A. 0.111
B. 0.144
C. 0.09
D. 0.069
86) Marcos Pizza has a percentage lease on its 1,500 SF space in the Ashwood Center. The terms are $1.25 / SF / month rent plus 2% of the store’s gross income. If monthly sales averaged $35,000 last year, how much annual rent did Marcos Pizza pay last year?
87) An apartment’s rent is scheduled to increase by 8%. If the current rent is $950, the new rent will be what?
88) A tax rate on a house with a $300,000 taxable value is 11 mills per thousand dollars of assessed valuation. What is the tax?
89) The village of Parrish has an annual budget requirement of $20,000,000 to be funded by property taxes. Assessed valuations are $400,000,000, and exemptions total $25,000,000. What must the tax rate be to finance the budget?
90) A $600,000 property sells at a 6% commission with a 50-50 co-brokerage split and a 50% agent split with her broker. What are total, co-brokerage, agent’s, and broker’s commissions?
91) A home sells for $460,000 and has a loan balance of $300,000 at closing. If the seller agrees to pay a 7% commission, where closing costs are $4,000, how much will the seller net?
92) A home seller wants to net $80,000. The commission is 7%, the loan payoff is $200,000, and closing costs are $6,000. What is the minimum listing price that the seller can agree to?
93) A home sells for $330,000 and has a loan balance of $260,000 at closing. The commission is 6% and other closing costs are $14,000. What is the seller’s net?
A. $50,200
B. $70,000
C. $56,000
D. $36,200
94) A tax rate on a house with a $350,000 taxable value is 9 mills per thousand dollars of assessed valuation. What is the annual tax bill?
A. $2,850
B. $3,150
C. $2,450
D. $15,750
95) A town has a tax base of $88,000,000 and a total assessed valuation of $99,000,000. What is the total amount of the town’s tax exemptions?
A. $9,000,000
B. $11,000,000
C. $187,000,000
D. $1,100,000
96) A restaurant’s rent is scheduled to increase by 7.1% next year. If the current monthly rent is $2,780, the new rent will be
A. $2,613
B. $2,945
C. $2,919
D. $2,977
97) An apartment’s rent is scheduled to increase by 4.4%. If the current rent is $1,255, what will the new rent amount be?
A. $1,310
B. $1,283
C. $1,324
D. $1,200
98) The sellers, Mr. and Mrs. Hernandez, listed their property for $112,000 and agreed to an exclusive right to sell listing agreement at a 4% commission to be paid to Lucky Nines Estate Company at closing. The sellers sold the property themselves during the listing period for $106,000. How much commission, if any, would Lucky Nines Real Estate Company be entitled to at closing?
A. $4,240
B. $4,480
C. $0
D. $4,360
99) Seller Jones signed an exclusive right to sell listing on her home with Muller Realty for $155,000 at a commission rate of 5% to be paid to broker Muller at closing. As part of the agreement, broker Muller will split the commission equally with any other broker that can bring a buyer for Jones’ property. If another broker sold the property, how much will broker Muller receive?
A. $0
B. $3,875
C. $7,750
D. $1,550
100) A $340,000 property sells at a 7% commission with a 50-50 co-brokerage split and a 50% agent split with her broker. What is agent’s commission?
A. $7,140
B. $5,950
C. $11,900
D. $5,440
101) A town has a tax base of $74,000,000 and a budget of $600,000. What is the tax rate in terms of mills?
A. 12.3 mills
B. 10 mills
C. 8.1 mills
D. 15.2 mills
102) A restaurant generates $72,000 in sales per month. The lease calls for 2.2% percentage rent. What is the monthly rent amount?
A. $1,584
B. $2,160
C. $1,440
D. $1,100
103) Chloe wants to net $50,000 on her house. Her closing costs will be $8,000 plus a 7% commission. She owes $200,000 on her loan. What is the minimum contract price that she can accept for her property?
A. $268,817
B. $277,419
C. $223,656
D. $286,654
104) A homeowner receives a tax bill that includes an amount for the library district, taxed at $2.00 per $1,000, and the fire protection district, taxed at $3.00 per $1,000. How much does the taxpayer have to pay for these two items if the property’s taxable value is $78,000?
A. $546
B. $1,560
C. $390
D. $234
105) A property listed for $650,000 receives an offer for $610,000. This offer’s percentage of the listing price is what?
106) A seller requires a 2.5% deposit on a property listed for $400,000. The required deposit (assuming a full price offer) is what?
107) An annual tax bill is $2,400. Closing is on February 14th and the day of closing belongs to the seller. What is the seller’s share of the taxes using the 360-day method?
108) A seller receives $1,000 rent in advance on her property that she is selling. The closing occurs on the 10th of the month. Using the 360-day method, how is this proration handled, assuming the seller owns the day of closing?
109) A property’s real estate taxes are $1,000, and this amount is paid in arrears. The closing was on May 5th. How would the entry read on the closing statement? Assume the taxes remain the same, the seller owns the day of closing, and use the 360-day method.
A. Credit the buyer $347.22, debit the seller $347.22
B. Debit the buyer $347.22, credit the seller $347.22
C. Credit the seller $342.47, debit the buyer $342.47
D. Debit the buyer $342.47, credit the seller $342.47
110) A borrower receives a mortgage for a 30 year loan with a principal balance of $225,000, a payment of $1245, and at an interest rate of 4.25%. If she makes 2 payments on the loan, what will her principal balance be after the second payment is applied?
A. $224,103.00
B. $224,102.17
C. $223,406.24
D. $224,551.88
111) Jared is buying Victoria’s house. The closing date (day belongs to seller) of the sale transaction is September 1 (day 244 of the year). Current year real estate taxes are $2,100 (will be billed to buyer next year). Use the 365-day method for prorating. What is the seller’s share of the real estate taxes?
A. $1,403
B. $2,100
C. $1,050
D. $702
112) A seller received a monthly rental payment of $3,000 in advance. At closing, the seller has earned only $900 of this rent. What should appear on the closing statement?
A. A debit to the seller and credit to the buyer for $3,000.
B. A debit to the seller for $2,100 and a credit to the buyer for $2,100.
C. A debit to the seller for $900 and a credit to the buyer for $900.
D. A credit to the seller for $2,100 and debit to the buyer for $2,100.
113) A buyer will receive a utilities bill for an estimated $400 at the end of the month. At closing, the seller has used an estimated $100 of the bill. What should appear on the closing statement?
A. A credit to the buyer for $100 and debit to the seller for $100
B. A credit to the buyer for $300 and debit to the seller for $300
C. A debit to the buyer for $100 and a credit to the seller for $100.
D. A credit to the buyer of $200 and a debit to the seller of $200.
114) If the taxes for the current year WERE NOT paid and the property sold during the year, how would the entry appear on a full settlement statement?
A. Debit the seller and credit the buyer
B. Credit the seller and debit the buyer
C. Debit the broker and credit the seller
D. Credit the broker and debit the buyer
115) A home costing $540,000 is worth $588,000 two years later. What is the one-year appreciation rate?
A. 8.8%
B. 4.4%
C. 4.1%
D. 5.0%
116) Christine has monthly loan payments of $1,857. Her loan is for $300,000 @ 6.3% interest. How much of her first payment goes towards interest?
A. $1,757
B. $100
C. $1,575
D. $282
117) A shopping mall grosses $625,000 / month. If the market value of this property is $52,000,000, what is its Gross Income Multiplier (GIM)?
A. 6.9
B. 10.4
C. 7.7
D. 83.2
118) Debra wants to net $100,000 on her house. Her closing costs will be 15,000 plus a 6% commission. She owes $310,000 on her loan. What is the minimum listing price that Debra can agree to?
A. $438,221.39
B. $425,000
C. $452,127.66
D. $452,100
119) An apartment building has $105,000 net income and sold for $1,450,000. What was the rate of return?
A. 7.2%
B. 13.8%
C. 8.3%
D. 9.1%
120) Jerry recently obtained an 65% loan on his $295,000 home, and he had to pay $4,300 for points. How many points did he pay?
A. 2.2 points
B. 1.5 points
C. 1.8 points
D. 3.4 points
121) If an investor wants to combine a 5/8 acre parcel with a 3.9 acre parcel, how big will the parcel be, expressed as a decimal?
A. 4.675 acres
B. 4.525 acres
C. 3.2750 acres
D. 4.58 acres
122) A $150,000 loan has monthly interest-only payments of $1,000. Its annual interest rate is
A. 3 percent.
B. 6.5 percent.
C. 8 percent.
D. 12.5 percent.
123) Seller David requires a 4% deposit on all offers. Buyer Jack wants to offer $115,000 for the property. The property was appraised at $122,000. What must the earnest money deposit be if Jack presents his current offer?
A. $4,600
B. $4,740
C. $4,880
D. $2,340
125) A house sells for $237,000. What would Jane’s commission rate be as a percent if she received a check for $11,400?
A. 4.6%
B. 4.8%
C. 6.2%
D. 5.4%
126) The subject has $8,000 pool and a $2,000 chimney but no porch. A comparable that sold for $199,000 has a $3,000 porch but no pool or chimney. Assuming all else is equal, what is the adjusted value of the comparable?
A. $206,000
B. $186,000
C. $189,000
D. $192,000
127) If the monthly rent of a property is $4,000, and the Gross Rent Multiplier (GRM) is 91, what is the value of the property?
A. $404,000
B. $364,000
C. $439,560
D. $324,000
128) A homeowner receives a tax bill that includes an amount for the school district, taxed at $9.00 per $1,000, and the fire protection district, taxed at $3.00 per $1,000. How much does the taxpayer have to pay for these two items if the property’s taxable value is $336,000?
A. $4,032
B. $3,024
C. $8,064
D. $5,040
129) If a borrower had an interest rate of 5 1/4 percent and refinanced, lowering the interest rate by 3/8 percent, what is the amount of interest after refinancing?
A. 4 ½ percent
B. 5 percent
C. 4 ¾ percent
D. 4 7/8 percent
130) Seller Trevor receives an offer of $181,000 on a property he listed at $193,000. The property has been appraised at $198,000. How much is the offer as a percent of the listing price?
A. 91.4%
B. 97.5%
C. 95.2%
D. 93.8%
131) Christine has monthly loan payments of $1,857. Her loan is for $300,000 @ 6.3% interest. How much of her first payment goes towards interest?
A. $1,757
B. $100
C. $1,575
D. $282
132. Amy agreed to a contract price of $100,000 for a home and secured a mortgage loan for $80,000. If the appraised value is $110,000, what is the loan to value ratio?
A. 100%
B. 82%
C. 80%
D. 125%
133. A building generates $103,000 in effective rental income and $900 in vending machine income. The same complex has $40,700 in operating expenses and $36,000 in debt service payments. What is the pre-tax cash flow of the complex?
A. $26,300
B. $67,900
C. $27,200
D. $62,300
134. If the roof a property cost $14,000 and its economic life is 18 years, what would its value be after four years using a straight-line method of depreciation?
A. $13,222
B. $9,240
C. $10,889
D. $12,666
135. What is the volume of a 90′ x 20′ x 12′ house?
A. 21,600 cubic feet
B. 1,800 cubic feet
C. 3,750 cubic feet
D. 36,000 cubic feet
136. What is the number one rule of adjusting properties when using the sales comparison approach to value?
A. If the comparable is inferior to the subject, subtract value from the comparable.
B. If the comparable is superior to the subject, add value to the comparable.
C. Never adjust the subject property
D. Always use assessed value, not market value
137. Brendan’s property taxes are being calculated for county and school taxes. School taxes are 6 mills and county taxes are 5 mills. How much will Brendan pay in taxes if his property’s taxable rate is $350,000?
A. $38,500
B. $2,100
C. $3,850
D. $3,500
138. A sale transaction closes on April 15th. The day of closing belongs to the seller. Real estate taxes for the year, not yet billed, are expected to be $2,110. According to the 365-day method, what is the seller’s share of the tax bill?
A. $626
B. $675
C. $607
D. $721
139. An FHA-insured loan in the amount of $57,500 at a 6 ½% interest rate for 30 years was closed on March 17. The first monthly payment is not due until May 1. If the interest is paid monthly in arrears, how much pre-paid interest does the buyer owe at closing? (Use a 360-day year)
A. $145.32
B. $311.52
C. $551.20
D. $3,737.50
140. An apartment building that sold for $780,000 had a monthly gross income of $8,000. What is its monthly gross rent multiplier?
A. 97.5
B. 62.4
C. 103
D. 158
141. Shelly bought a house five years ago for $150,000 and obtained an 80% loan. Now the home is worth $140,000 and her loan balance has been reduced by $12,000. What is Shelly’s current equity?
A. $32,000
B. $42,000
C. $44,000
D. $2,000
142. A lender determines that a homebuyer can afford to borrow $220,000 on a mortgage loan. The lender requires an 85% loan-to-value ratio. How much can the borrower pay for a property and still qualify for this loan amount (to the nearest $1,000)?
A. $187,000
B. $243,000
C. $254,000
D. $259,000
143. A five-sided lot has the following dimensions: side A = 44′, side B = 67′, side C = 91′, side D = 18′, and side E = 55′. What is the perimeter of the lot?
A. 257 feet
B. 220 feet
C. 320 feet
D. 275 feet
144. A borrower obtains a 30-year $210,000 amortized loan at a 6% interest rate. If his monthly payment is $1199.10, how much is applied to the principal balance in the first month?
A. $143.54
B. $144.94
C. $169
D. $149.10
145. A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating expenses of $15,000. Using a capitalization rate of 8%, what is the property’s value (rounded up to the nearest $1,000)?
A. $413,000
B. $368,000
C. $340,000
D. $600,000
146. Agent Daisy agrees to a 5% commission to list a home at $330,000. The property is sold through another cooperating brokerage with that firm to receive 50% of the total commission on the $330,000 sale. If Daisy receives 55% of her broker’s commission and does not bring the buyer, how much does Daisy’s broker receive from the sale?
A. $16,500
B. $8,250
C. $4,537.50
D. $3,712.50
147. A rented office space has a monthly income of $3,800. A suitable gross income multiplier derived from market data is 11.1. What would the estimated value be? Round to the nearest $1,000.
A. $380,000
B. $422,000
C. $506,000
D. $342,000
148. A homeowner bought a house one year ago for $250,000. Since then, the homeowner has spent $4,000 to pave the driveway and has added a screen porch at a cost of $3,000. Total depreciation has been $6,000. What is the homeowner’s adjusted basis?
A. $257,000
B. $251,000
C. $263,000
D. $237,000
149. A house is sold for $105,500 and the commission rate is 6 percent. If the commission is split 60/40 between the selling broker and the listing broker, respectively, and each broker splits his share of the commission evenly with his salesperson, how much will the listing salesperson receive from this sale?
A. $1,266
B. $2,532
C. $3,165
D. $1,899
150. A fine jewelry store leased a space at the mall with a base rent of $1,800 a month, plus 4% of all sales over $200,000. If the gross sales were $325,000, what was the total amount of rent paid by Heinz Fine Jewelry at the end of the year?
A. $26,600
B. $21,600
C. $125,000
D. $5,000
151. What is 0.0475 converted to a percentage?
A. 4.75%
B. 0.475%
C. 47.5%
D. 475%
152. If a square-shaped lot measures 125’ on one side, what is the square footage of the lot?
A. 250’
B. 15,625 square feet
C. 500’
D. 1,855 square feet
153. Stacey owns a lot that has 180 feet of front footage and contains 36,000 square feet. He purchases two identically-sized lots adjacent to each side of his lot. These side lots are each 200 feet deep and each side lot contains 19,000 square feet. What is the total front footage of all three lots?
A. 190
B. 200
C. 275
D. 370
154. How many acres are there in the N ½ of the NE ¼ and the NE ¼ of the SE ¼ of a section?
A. 20 acres
B. 40 acres
C. 80 acres
D. 120 acres
155. What is 25% converted to a decimal?
A. 25.0
B. 2.50
C. 0.25
D. 0.025
156. Six years ago a commercial property owner paid $490,000 for her complex which included 10 acres of land valued at $100,000. Using a 40-year straight-line depreciation method, what would be the current value of the apartment complex?
A. $330,000
B. $390,000
C. $400,000
D. $431,500
157. A property currently valued at $450,000 is expected to appreciate 8% each year for the next 3 years. What will be its appreciated value at the end of this period?
A. $524,880
B. $566,870
C. $474,000
D. $558,000
158. If a hotel has an annual Net Operating Income of $812,000 at a 9.35% cap rate, what is its current value (to the nearest thousand)?
A. $7,592,000
B. $9,350,000
C. $8,684,000
D. $6,767,000
159. A sale transaction on rental property closes on December 10th. The landlord received the December rent of $4,400 on December 1. Assuming the closing day is the seller’s, and that the 360-day method is used for prorating, how much will the seller owe the buyer?
A. $1,419
B. $1,467
C. $2,933
D. $2,981
160. A seller of a property, listed at $200,000, accepted a 90% offer. The home appraised at $185,000 and the buyers obtained a loan for 85% for 30 years at 5% interest. What is the first month’s interest?
A. $637.50
B. $7,650
C. $737.50
D. $6,750
161. If a lot contains 48,000 square feet and is 240’ wide, how deep is the lot?
A. 480’
B. 240’
C. 200’
D. 720’
162. Violet has a FHA loan for $90,000. The lender is requiring a 1% discount point to the lower the interest rate. What amount is the lender charging for the discount point?
A. $600.00
B. $90.00
C. $900.00
D. $1,000.00
163. If a borrower’s monthly interest payment on an interest-only loan at an annual interest rate of 7.3% is $877, how much was the loan amount (rounded to the nearest hundred)?
A. $120,100
B. $100,300
C. $144,200
D. $134,200
164. If a buyer purchases 25% of a lot in the spring and then purchases 50% more later in the fall, what percentage of the lot is still available for purchase?
A. 20%
B. 25%
C. 50%
D. 75%
165. A home sells for $150,000 and has a mortgage loan balance of $100,000 at closing. If the commission is 5% and other closing costs are $6,000, what is the seller’s net?
A. $44,000
B. $40,000
C. $32,250
D. $36,500
166. A seller wants to net $55,614 from the sale of her house after paying a 7% commission. Her minimum sales price will have to be?
A. $55,341
B. $59,506
C. $59,800
D. $63,000
167. A tax rate on a building with a $530,000 taxable value is 4.5 mills per thousand dollars of assessed valuation. What is the annual tax liability?
A. $23,850
B. $1,590
C. $2,385
D. $15,900
168. A strip mall generates $215,000 in effective rental income and $3,000 in other income. The same mall has $102,000 in operating expenses and $15,000 as reserves. What is the net operating income of the strip mall?
A. $113,000
B. $99,000
C. $101,000
D. $116,000
169. A home seller wants to net $15,000. If he has agreed to pay a 5% commission, the loan payoff is $94,000 and closing costs are $16,000, what must the minimum listing price be? Round to the nearest $100.
A. $125,000
B. $130,700
C. $136,300
D. $131,600
170. Land sells for $9,000 an acre. What will 750,000 SF of land sell for? Round to the nearest thousand.
A. $105,000
B. $16,000
C. $129,000
D. $155,000
171. The annual property taxes of $1,700 were paid in arrears by the buyer. If the closing took place on June 4th and the seller was responsible through the day of closing, how did this appear on the settlement sheet if the 360-day method is used?
A. $727 DS, CB
B. $727 DB, CS
C. $973 DS, CB
D. $973 DB, CS
172. Assuming that the listing broker and the seller broker in a transaction split their commission equally, what was the sales price of the property if the commission rate was 6 ½ percent the listing broker received $5,187?
A. $159,600
B. $79,800
C. $119,700
D. $179,800
173. A buyer secured a $125,000 loan at 4.5% interest rate. To receive a lower interest rate, the buyer was required to buy down three discount points. How much were the discount points?
A. $3,550.00
B. $3,750.00
C. $4,250.00
D. $3,892.00
174. Ralph is buying Terry’s house. The buyer’s loan amount is $105,580. If the buyer has agreed to pay 3 points at closing, how much will he pay for the points?
A. $4,223
B. $1,584
C. $396
D. $3,167
175. If a corporate building has nine office suites that rents for $14,800 per month each, but suffers from a 14% vacancy rate and annual expenses of $21,100, what is the NOI of the building (round to the nearest $100)?
A. $93,500
B. $1,353,500
C. $133,200
D. $84,600
176. Sean, age 37, sold the home he purchased three years ago and now rents an apartment. He had originally purchased his home for $86,500 and sold it for $115,300. What is Sean’s capital gain?
A. $11,320
B. $16,980
C. $28,800
D. $0
177. Assuming the FHA qualifies borrowers based on a 31% debt ratio, if a borrower’s monthly gross income is $4,400, what monthly payment for housing expenses can this person afford based on this ratio?
A. $3,036
B. $4,400
C. $1,364
D. $1,244
178. A 198-foot x 330-foot lot sold for $30,000. What was the price per acre?
A. $20,000
B. $21,780
C. $30,000
D. $43,560
179. Two parcels of land priced at $1,200 per acre were purchased. One parcel was 15 acres in size and the other was 1 mile square in size. How much did these two parcels cost together?
A. $180,000
B. $640,000
C. $786,000
D. $1,020,000
180. If a house sold for $40,000 and the buyer obtained an FHA-insured mortgage loan for $38,600, how much money would be paid in discount points if the lender charged four points?
A. $1,600
B. $1,544
C. $1,500
D. $385
181. If one discount point costs the borrower 1% of the loan amount, and increases the lender’s yield by 1/8th of one percent, how many discount points must be purchased to lower the interest rate by 1%?
A. 1
B. 4
C. 8
D. 16
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