theory and practice: Real Estate Practice : Lesson 3925
 01/26/15 01:21 AM
If you bought a house for the listing price less 20% and sold it for the listing price, what percent of profit would you make ? Take your time. The answer is posted below the wildlife photo. A. 25% Here's an example for you. Let's say we bought the home with a listing price of 500 thousand dollars for twenty percent less than the listing price. That would amount to a selling price of 400 thousand dollars. Let's subtract the original listing price of 500 k from the selling proce of 400 k and we see that the 20% less amounts … (0 comments)

theory and practice: Real Estate Practice : Lesson 3924
 01/26/15 01:19 AM
A piece of land 500 feet by 350 feet had a sidewalk laid around it by the owner. The sidewalk encompassed the entire lot and a curb was placed along the lot lines. The sidewalk cost $32,000 and the curb was $20 per lineal yard. What was the total cost of the sidewalk including the curb ? Please take your time. The answer is below the wildlife photo. A. $43,333.33 Remember that we're looking for a linear yard (3 feet) and not a cubic yard. First, find out what the total perimeter of the curb is by adding 500 plus … (0 comments)

theory and practice: Real Estate Practice : Lesson 3923
 01/26/15 01:17 AM
A builder / developer has 5.25 acres of land. He wants to divide the land into lots 60 feet wide by 100 feet deep. 36,690 square feet of land is required for street construction With all of the above considered, how many lots could be derived from the tract of land ? Take your time. The answer is below the wildlife photo. A. 32 lots Multiply 43,560, the number of square feet in an acre, time 5.25 acres of land for a total of 228,690 square feet of land. Subtract the necessary 36,690 square feet for the streets from … (0 comments)

theory and practice: Real Estate Practice : Lesson 3922
 01/26/15 01:15 AM
Arnold got his tax bill today and it was $4903.00. The tax rate is 42 mills per dollar. The property is assessed at 58.25% of it's value. What is the actual value of Arnold's property ? Take your time. The solution is below the wildlife photo. A. $200,408.75 4903 tax bill divided by 0.042 mills = 116738.095238 assessed value of the property or 58.25% of it's value divided by 0.5825 the assessed rate = 200408.74719 or 200,408.75 rounded the actual value of the property. … (0 comments)

theory and practice: Real Estate Practice : Lesson 3921
 01/26/15 01:14 AM
A landowner has 160 acres of land. He sold 42.25 acres of the land to one man. He also sold one third of the remaining land to another buyer. How many acres were left ? A. 78.5 Acres Let's first subtract the 42.25 acres that were sold from the total number of acres owned by the seller and we have 117.5 acres left. If the owner sold one third of the remaining acreage to another buyer multiply .3333 (one third) times 117.5 (the remaining acreage) to see that the buyer bought 39.246075 acres. Subtract 39.246075 from 117.5 and we have 78.503925 acres … (0 comments)

theory and practice: Real Estate Practice : Lesson 3920
 01/26/15 01:12 AM
A seller has a tract of land which encompasses 108,900 square feet of land. The selling price is $12,500 an acre. How much is the seller asking for the tract of land ? Take your time. The solution is posted below the wildlife photo ? A. $31,250 There are 43,560 square feet in an acre. Divide 108,900 by 43,560 and we get 2.5 acres. Now multiply 2.5 times $12,500 and we get $31,250. … (0 comments)

theory and practice: Real Estate Practice : Lesson 3919
 01/26/15 01:09 AM
An investor bought a block of lots to build on with each lot containing a 75 foot frontage. The investor wants to sell the lots for $337,500 and keep two lots for himself. What does the investor have to sell the lots per front foot for to realize the sale amount he's seeking ? Take your time. The solution is below the wildlife photo. A. $375.00 per front foot. There are fourteen lots and the investor wants to keep two of them. That leaves twelve lots for sale . If each lot has a 75 foot frontage multiply 12 lots times … (0 comments)

theory and practice: Real Estate Practice : Lesson 3918
 01/26/15 01:06 AM
A home sold for $750,000 with a profit of 20% at closing. How much did the home cost originally ? Take your time. The solution is below the wildlife photo. A, $625,000 In this problem you have to remember to add a whole number to the divisor which includes the converted percentage into decimal. The whole number is 1 and the decimal is .20 or .2 which is also the 20% profit. Therefore, we divide the sale price of $725,000 by 1.2 and find that the home originally sold for $625,000. … (0 comments)

theory and practice: Real Estate Practice : Lesson 3917
 01/26/15 12:45 AM
The mortgage company decided to lend the owner of a property an amount of money equal to 66.6666% of the appraised value of the property along with an interest rate of 5% annual interest rate. The first years interest in $20,000. A. What was the property appraised for ? B. How much was the loan ? Take your time. The answer is posted below the wildlife photo. A. $600,000.60 B. $400,000 First, divide 20,000 dollars in interest for the first year by the annual interest rate of 5% or .05 and we get $400,000 for the amount of the … (0 comments)

theory and practice: Real Estate Practice : Lesson 3916
 01/26/15 12:34 AM
How much interest would there be on an $87,400 loan for two years, eight month and 15 days at the interest rate of 4.5% annual interest rate using a bankers year ? Please take your time. The solution is below the wildlife photo. A. $10,651.88 Lets first find the interest on one year by multiplying the interest rate of 4.5% or .045 times the loan balance of $87,400, and we get an annual interest total of $3933. Divide $3933 by twelve months or the number twelve to get a monthly interest payment of $327.75. Multiply 2 years, eight … (0 comments)

theory and practice: Real Estate Practice : Lesson 3915
 01/19/15 12:56 AM
Donna purchased a home seven years ago for $650,000. She signed a listing agreement recently and offered the home for sale through the broker at an increase of 30% over what she originally paid for the home. The house wasn't getting any offers because of poor market conditions and Donna decided to reduce the price by 25%. The property then sold with the reduced price. Donna paid a 5% commssion to the brokerage that listed the home. Did Donna gain or lose money in the sale ? How much did she gain or lose ? Take your time. The solution … (6 comments)

theory and practice: Real Estate Practice : Lesson 3914
 01/19/15 12:54 AM
Mrs.Berschmeir owns an apartment building in Memphis, which is rented weekly, with 27 rooms. Five tenants pay $170 dollars a week. Nine tenants pay $190 dollars a week. Eight tenants pay $160 dollars a week. Five tenants pay $180 dollars a week, plus $37.50 a week for a garage with additional storage space. What is the gross yearly income of the apartment building ? Take your time. The solution is posted below the wildlife photo. A. $256,230 gross yearly income 5 tenants * 170 week = 850 weekly total 9 tenants * 190 week = 1710 weekly total 8 tenants * 160 week = 1280 weekly total 5 tenants * 180 week = 900 weekly total 5 … (0 comments)

theory and practice: Real Estate Practice : Lesson 3913
 01/19/15 12:51 AM
A $465,000 investment reports annual earnings of 6.5%. Would would the monthly return be on the investment ? The solution is below the wildlife photo. Please take your time. A. $2518.75 Multiply 465,000 times the annual earnings rate of 6.5% by converting 6.5% to the decimal .065 times 465,000. The annual earnings are $30,225. Divide $30,225 by 12 (months in a year) to derive the monthly earning and we have $2518.75. … (2 comments)

theory and practice: Real Estate Practice : Lesson 3912
 01/19/15 12:49 AM
The property taxes on the house were $1260. The taxes were due on January 1st and paid by the seller. How much of a property tax refund would the seller get from the buyer if he sold the property and the taxes were prorated from September 15th of the year using a 360 day year ? The solution is below the wildlife photo. Take your time. A. $367.50 If were using a bankers year divide 1260 by 12 to get $105 a month. There are 3.5 months left in the tax year so multiply 105 times 3.5 and we … (0 comments)

theory and practice: Real Estate Practice : Lesson 3911
 01/19/15 12:48 AM
A loan was granted in the amount of $135,000. The annual rate of interest n the loan was 5.5%. What is the amount of a semiannual interest payment ? Take your time. The solution is below the wildlife photo. A. $3712.50 Find the annual interest payment by multiplying 5.5% or .055 times $135,000. The anuual interest is $7425. If we're looking for a semannual payment, divide $7425 by 2 and we now have $3712.50, the semiannual interest payment. … (0 comments)

theory and practice: Real Estate Practice : Lesson 3910
 01/19/15 12:46 AM
If the township of Fisherville has a tax rate of 16 mills, the school tax is 22.5 mills, and the county tax is 2.25 mills how much are the taxes on a property worth 500 thousand dollars assessed at 70% of it's value ? Take your time. The solution is below the wildlife photo. A. $14,262.50 First, determine the assessed value of the property by multiplying 70% or .7 times 500,000 and we get an assessed value of $350,000. Next, combine the millage rates of 16 plus 22.5 plus 2.25 to get the combined millage rate of 40.75 mills. Convert the millage … (0 comments)

theory and practice: Real Estate Practice : Lesson 3909
 01/19/15 12:44 AM
What is the total income for a shoe store for the month of March if it nets $425 a day, including Sundays ? Take your time. The solution is below the wildlife photo. A. $13,175 Easy one here ! Multiply 425 dollars times 31, the number of days in March, and we have $13,175. … (0 comments)

theory and practice: Real Estate Practice : Lesson 3908
 01/19/15 12:43 AM
What would a business be worth if it demonstrates a profit of $2,750 a month and the total earning on the investment amounts to 8% ? A. $412,500 Multiply 12 months times $2,750 to get a total profit of $33,000. Now divide the profit by the 8% earnings on the investment or $33,000 divided by .08 and we now have $412,500. … (0 comments)

theory and practice: Real Estate Practice : Lesson 3907
 01/19/15 12:41 AM
A property is assessed at $58,000. The school rate is $15.55 per 1000 dollars of assessed valuation. What is the amount of the school tax on the property ? A. $901.90 If the the assessed valuation is $15.55 per 1000 dollars, divide 1000 into 58,000 and we have 58. Now multiply 58 times $15.55 to get $901.90 … (0 comments)

theory and practice: Real Estate Practice : Lesson 3906
 01/19/15 12:39 AM
A $100,000 home was insured against fire for 80% of it's value. The insurance rate was $6.00 per $1000 of value for a three year policy. What was the cost of the premium per year ? Remember to take your time. The soultion is below the wildlife photo. A. $160 per year. Let's find out what 80% of the insured value of the home is by multiplying .80 times 100,000 and we get 80,000. Now divide 1000 dollars of value into 80,000 to get 80 increments of 1000 dollars of value, and multiply 80 times 6 dollars, which is … (0 comments)
