A Delaware home inspection reveals $18,500 of repairs. The buyer and seller negotiate: seller reduces price by 60% of repair cost. What is the price reduction?
Why $11,100 Is Correct
Answer A: $11,100
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 Delaware Questions
- A buyer's offer of $400,000 includes an inspection contingency allowing the buyer to withdraw if inspection reveals defects costing more than $5,000 to repair. The inspection reveals $6,000 in needed repairs. The buyer may:Contracts
- A Delaware seller accepts an offer for $350,000 but the sale is conditioned on the buyer obtaining a satisfactory home inspection. The result of a home inspection contingency that reveals a major foundation problem should be:Contracts
- A Delaware home is listed at $319,000 and has been shown 18 times in 45 days without an offer. The seller reduces the price by 3.5%. What is the new price?Real Estate Math
- A Delaware buyer submits an offer on a home. The seller changes the price and signs the modified offer back to the buyer. This is legally a:Contracts
- Entrepreneurial profit is included in the cost approach because:Property Valuation
- A Delaware property owner wants to sell their home for a net of $200,000 after paying a 6% commission and $4,000 in closing costs. What must the minimum sale price be?Real Estate Math
- A Delaware home's sales price is $480,000 and the buyer's agent earns 2.5% of the total 5% commission. What does the buyer's agent earn?Real Estate Math
- A Delaware buyer submits an offer with a home inspection contingency. The inspector discovers a cracked foundation. The buyer wants to cancel. What can the buyer do?Contracts
Key Terms to Know
The 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.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →