Real Estate Math
A Delaware property's NOI is $31,500 with a cap rate of 7%. A buyer's required return is 7.5%. By how much will the buyer discount the value below the seller's asking price?
A$30,000✓ Correct
B$45,000
C$60,000
D$15,000
Explanation
Seller's implied value (at 7% cap rate) = $31,500 ÷ 0.07 = $450,000. Buyer's max price (at 7.5% cap rate) = $31,500 ÷ 0.075 = $420,000. Difference = $450,000 − $420,000 = $30,000.
Related Delaware Real Estate Math Questions
- A seller wants to net $275,000 after paying a 6% commission. What must the property sell for?
- A Delaware commercial building has 10,000 sq ft of rentable space. The annual rent is $18 per sq ft. What is the annual gross rental income?
- A Delaware tenant pays $2,000/month rent. The landlord raises rent by 4%. What is the new monthly rent?
- A Delaware property purchased 5 years ago for $250,000 has appreciated 4% per year compounded. What is its approximate current value?
- A Delaware seller accepts $495,000. They owe $290,000 on their mortgage, pay a 5% commission, and have $6,500 in closing costs. What are the seller's net proceeds?
- A property sold for $450,000, which was 125% of the original purchase price. What was the original purchase price?
- A Delaware buyer purchases a home for $280,000. The buyer puts 10% down. What is the loan amount?
- A Delaware property generates $3,200 per month in rent. The mortgage payment (P&I) is $1,800/month, property taxes are $250/month, insurance is $100/month, and maintenance averages $200/month. What is the monthly cash flow?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →