A house was purchased for $200,000 and sold 3 years later for $250,000. What is the percentage increase in value?
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 California Questions
- A property was purchased for $380,000 and sold 3 years later for $437,000. What was the total percentage gain?Real Estate Math
- A home was purchased for $320,000 and sold 3 years later for $389,600. What was the total percentage appreciation over the 3 years?Real Estate Math
- A property was purchased for $320,000 and sold 3 years later for $389,000. What is the percentage of appreciation?Real Estate Math
- A property was purchased for $380,000 and later sold for $475,000. What was the percentage appreciation?Real Estate Math
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.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
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 California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →