A Delaware investor buys a property for $275,000, spends $35,000 in renovation, and sells it for $365,000 with $18,000 in selling costs. What is the net profit?
Why $37,000 Is Correct
Answer A: $37,000
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
- Entrepreneurial profit is included in the cost approach because:Property Valuation
- A Delaware property sells for $450,000. The first mortgage balance is $280,000. Closing costs and commissions total $27,000. What are the seller's net proceeds?Real Estate Math
- An investor purchases a Delaware property for $500,000 with a 25% down payment and obtains a mortgage for the balance. Closing costs are $8,000 (paid in cash). What is the investor's total cash investment at closing?Real Estate Math
- A home sells for $380,000. The total commission is 5.5%. The listing broker and selling broker split the commission equally. The listing salesperson receives 60% of the listing broker's share. What does the listing salesperson earn?Real Estate Math
- A property sells for $425,000. Delaware transfer tax is 4% of the sale price (split equally between buyer and seller). What is each party's transfer tax obligation?Real Estate Math
- Marketable title in Delaware means:Escrow & Title
- A property appraised using the sales comparison approach has three comparables. The appraiser adjusts each comparable. The final step is to:Property Valuation
- Reproduction cost in the cost approach is the cost to:Property Valuation
Key Terms to Know
A tax-deferred exchange allowing investors to sell one investment property and reinvest proceeds in a like-kind property while deferring capital gains taxes.
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.
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.
Math Concepts
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 →