Real Estate Math
A Minnesota home depreciated from $320,000 to $288,000. By what percentage did it depreciate?
A8%
B10%✓ Correct
C11.1%
D12%
Explanation
Depreciation percentage = (Original value - Current value) / Original value = ($320,000 - $288,000) / $320,000 = $32,000 / $320,000 = 0.10 = 10%. A 10% decline from the original value represents the total accumulated depreciation. Market depreciation can result from economic downturns, deferred maintenance, or declining neighborhood conditions.
Related Minnesota Real Estate Math Questions
- A Minnesota property has a market value of $425,000. The local homestead class rate is 1% for the first $500,000. The local tax rate is 110 mills. What is the estimated annual property tax?
- A Minnesota listing agent negotiates a 5.5% commission on a $445,000 sale. The listing brokerage receives 2.75% and the buyer's brokerage receives 2.75%. If the listing agent receives 55% of the listing brokerage's share, how much does the listing agent earn?
- A home is listed at $385,000 and sells for 97% of list price. The seller pays a 5.5% commission on the sale price. What is the commission?
- A buyer makes an earnest money deposit of 2% on a $450,000 home. How much is the earnest money deposit?
- A salesperson earned $14,400 representing 60% of the company's side of a 6% commission. What was the sales price of the property?
- A Minnesota buyer purchases a property for $245,000 with 5% down. What is the loan-to-value (LTV) ratio?
- A Minnesota property has a market value of $450,000. The county assessment ratio is 100% and the mill rate (tax rate) is 15.5 mills. What is the annual property tax? (1 mill = $1 per $1,000 assessed value)
- A Minnesota property sells for $350,000. The deed tax is $1.65 per $500 of net consideration. What is the deed tax owed?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →