Real Estate Math
A home is listed for $399,000. After a 90-day market period, the seller reduces the price by 4%. What is the new list price?
A$383,040✓ Correct
B$384,000
C$325,584
D$385,000
Explanation
Reduction = $399,000 × 4% = $15,960. New price = $399,000 − $15,960 = $383,040.
Related Alabama Real Estate Math Questions
- A buyer in Alabama puts 10% down on a $320,000 home. What is the loan amount?
- A lender charges 2 origination points plus $1,500 in other fees on a $225,000 loan. What are the total upfront loan costs?
- A property has an NOI of $42,000 and debt service of $30,000 per year. What is the before-tax cash flow?
- An investor wants a 10% return on a $500,000 investment. What annual net operating income is needed?
- An investor purchased a 4-unit building for $480,000. Each unit rents for $1,100/month. What is the gross rent multiplier?
- A broker earns a 6% commission on a $480,000 sale. If the broker pays their salesperson 55% of the listing side (50/50 split with buyer's broker), how much does the salesperson earn?
- A property's purchase price is $180,000 with a 20% down payment. The buyer also pays 2 points on the loan. What is the total cost of the points?
- An investor purchases a rental property for $320,000 with a 25% down payment. What is the loan-to-value (LTV) ratio?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →