Module 14 Quiz

Question 1

A property owner sold her 3/4-acre site for $3.50 per square foot. What was the final selling price of the land?

Answer 1

$114,345

Note: 43,560 sq. ft. × 0.75 = 32,670 sq. ft. × $3.50 per sq. ft. = $114,345

Question 2

The property taxes on a land parcel increased by $984 in the last year. If the taxes were $12,300, what is the percentage of increase?

Answer 2

8%

Note:HP 12C calculation: $12,300 [Enter] $13,284 [D%] equals 8.00%

($13,284 used above was derived by adding $12,300 and $984)

Question 3

An existing building cost $450,000 when it was new. Over the years, the building has depreciated 15% due to wear and tear. What is the depreciated cost of the building?

Answer 3

$382,500

Note: In the above solution, think of the building as 85% depreciated or alternatively: $450,000 × 0.15 = $67,500 amount of depreciation $450,000 − $67,500 = $382,500 depreciated cost of the building

Question 4

The Fairchilds’ property was listed for $525,000, but it was reduced in price to $493,500 due to a lack of market interest. What is the price discount expressed
as a percentage?

Answer 4

6%

Note: $525,000 − $493,500 = $31,500 / $525,000 = 0.06 or 6% discount HP 12C calculation: $525,000 \ $493,500 [D%] equals −6.00

Question 5

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 over their reserve price did the sellers receive?

Answer 5

9%

Note: $174,400 − $160,000 = 14,400 / $160,000 = 0.09 or 9% increase
HP 12C calculations: $160,000 \ $174,400 [D%] equals 9.00

Question 6

BONUS:
Mosley is appraising a vacant land site that is two thirds of an acre in size and has 112.3 feet of frontage on the street. The appraiser’s market data indicates a price of $2.90 per square foot. What is the price per foot for the 112.3 feet of road frontage?

Answer 6

$749.92

Note:

1) 1 acre = 43,560 / 3 = 14,520 × 2 = 29,040 sq. ft. for the land
2) 29,040 * $2.09 = $84,216
3) $84,216/112.3 = $749.92 per front foot (or $750)

Question 7

A property owner discounted his asking price by 12% in
order to attract market interest in the property. If the original asking price was $250,000, how much was the price reduction?

Answer 7

$30,000

Note: Multiply .12 x $250,000

Question 8

Culver discounted his asking price by $45,000. If the original asking price was $300,000, what was the percentage price reduction?

Answer 8

15%

Note: $45,000 / $300,000

Question 9

McDaniel lowered his asking price by 10%. If the original asking price was $450,000, what was the revised asking price of the property?

Answer 9

$405,000

Note:

1) 100 - 10% = 90% = .90
2) .90 x 450,000 = 405,000

Question 10

A tenant gave the landlord a damage deposit that was 150% of the monthly rent. If the monthly rent is $2,100, what is the amount of the damage deposit?

Answer 10

$3,150

Note:

1) 150% = 1.5
2) 1.5 x $2,100 = $3,50

Question 11

A seller was charged a $43,500 commission fee by her

real estate broker. If the sale price was $725,000, what was the broker’s commission percentage?

Answer 11

6%

Note: $43,500 / $725,000

Question 12

A client included $5,000 rush service in the overall assignment fee of $25,000.
What is the percent attributable to the rush service fee?

Answer 12

20%

Question 13

How much money does Torres need to deposit to earn $3,000 in annual interest if the annual interest rate is 5%?

Answer 13

$60,000

Note: $3,500 / .05

Question 14

Conventional financing requires 20% as a down payment, and a pre-qualified buyer has $70,000 cash available. What is the maximum price the buyer can afford?

Answer 14

$350,000

Question 15

Jeter paid $10,800 in debt service last year (principal
and interest) based on an original mortgage amount of
$150,000. What percent is the annual debt service to the mortgage amount?

Answer 15

7%

Question 16

If the current sale price of a property is $241,500 and the prior sale was $210,000, how much did the property increase—expressed as a percent increase from the prior sale?

Answer 16

15%

Note: In this problem, the base price is $210,000, and we need to solve the percent increase (to $241,500). On the HP 12C, you can use the [D%] (delta percent) key to derive the percentage change.

Math check: $210,000 * 1.15 = $241,500

Question 17

The listed asking price of a property was $250,000, but the property eventually sold for $220,000. How much was the discount—expressed as a percent?

Answer 17

-12%

Question 18

The median sale price for one-unit properties in the city
of Lynwood is currently $182,000. The median price two
years earlier was $227,500. What is the change in median price from two years ago expressed as a
percent?

Answer 18

-20%

Question 19

An investor experienced a loss of 20% in her REIT mutual fund during the previous two quarters.
If the investor’s REIT portfolio was valued at $50,000 prior to the loss, how much of a percentage gain in the fund does she need to fully recover?

Answer 19

25%