Real Estate Math
A seller's net after a 6% commission and $4,500 in closing costs is $230,000. What did the property sell for?
A$234,500✓ Correct
B$244,500
C$248,936
D$255,000
Explanation
Sale price − 6% commission − $4,500 = $230,000. Let SP = sale price. SP × 0.94 − $4,500 = $230,000. SP × 0.94 = $234,500. SP = $234,500 ÷ 0.94 ≈ $249,468.
Related Alabama Real Estate Math Questions
- An investor purchased a 4-unit building for $480,000. Each unit rents for $1,100/month. What is the gross rent multiplier?
- A $250,000 loan at 5% annual interest has a monthly payment of $1,342. How much of the first payment goes to interest?
- 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 $220,000 loan has a monthly payment of $1,319. After the first payment, the remaining balance is $219,731. How much principal was paid in the first month?
- A property has an assessed value of $240,000. The assessment ratio is 20% of market value, and the tax rate is $35 per $1,000 of assessed value. What is the annual property tax?
- Annual property taxes in Alabama are $2,400. Closing is on March 31. The seller owes taxes for January 1 through March 31 (90 days). How much does the seller owe at closing?
- A buyer in Alabama puts 10% down on a $320,000 home. What is the loan amount?
- A property has a gross annual income of $84,000 and a GRM of 10. What is the estimated property value?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →