A home sells for $275,000. The seller's original purchase price was $220,000. What is the percentage of appreciation?
Why 25% Is Correct
Answer B: 25%
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Alabama Questions
- A buyer makes an offer to purchase a home. The seller responds by changing the price. This response is a:Contracts
- In Alabama, which approach to value is most appropriate for a single-family home in a residential neighborhood?Property Valuation
- A purchase agreement in Alabama that is contingent on the sale of the buyer's current home is an example of a:Contracts
- A buyer obtains an 80% loan-to-value mortgage on a home. The purchase price is $275,000. What is the required down payment?Real Estate Math
- An Alabama property owner who rents out a single-family home without using a real estate agent is exempt from the Fair Housing Act ONLY if they:Fair Housing
- An Alabama purchase contract that is subject to the buyer obtaining a satisfactory home inspection within 14 days is an example of a:Contracts
- A home was purchased for $225,000 and sold 4 years later for $270,000. What was the percentage appreciation over the entire 4-year period?Real Estate Math
- An Alabama real estate licensee who receives a gift card from a client as a thank-you for helping them purchase a home:Alabama License Law
Key Terms to Know
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →