Real Estate Math
A buyer in Alaska paid $345,000 for a home and wants to net $400,000 after a 5% commission when they eventually sell. What minimum sale price must they achieve?
A$400,000
B$420,000
C$421,053✓ Correct
D$440,000
Explanation
Let S = sale price. Net = S − 0.05S = 0.95S = $400,000. S = $400,000 ÷ 0.95 = $421,053. To solve this, multiply the relevant values: $345,000 and $400,000 at 5%.. The correct answer is $421,053.. This is a common calculation on the Alaska real estate exam.
Related Alaska Real Estate Math Questions
- An Alaska homeowner wants to add a deck that costs $18,000. Studies show improvements of this type return 75% of cost at resale. How much value does the deck add?
- A building in Anchorage has 12 units, each renting for $1,650/month. Annual operating expenses are $42,000 and vacancy is 6%. What is the NOI?
- A commercial property in Alaska is offered for sale at an 8.5% cap rate. The NOI is $68,000. What is the asking price?
- A borrower in Alaska has a debt-to-income (DTI) ratio limit of 43%. Their gross monthly income is $6,500. What is the maximum total monthly debt payment allowed?
- An Alaska salesperson closes a transaction and earns a 3% commission on a $420,000 sale. The broker receives 40% and the salesperson receives 60% of the total commission. How much does the salesperson earn?
- An Alaska buyer borrows $180,000 at 4.5% for 15 years. The monthly factor is $7.65 per $1,000. Monthly P&I payment is:
- A buyer in Alaska makes an offer of $450,000 on a property listed at $475,000. The seller counters at $462,000. The buyer and seller split the difference. The final sale price is:
- A section of land in Alaska contains 640 acres. The NE quarter of the SW quarter of Section 10 contains how many acres?
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →