Real Estate Math
A property's assessed value is $240,000. The assessment ratio is 60% of market value. What is the estimated market value?
A$144,000
B$400,000✓ Correct
C$360,000
D$300,000
Explanation
Market Value = Assessed Value ÷ Assessment Ratio = $240,000 ÷ 0.60 = $400,000. To solve this, multiply the relevant values: $240,000 at 60%.. The correct answer is $400,000.. This is a common calculation on the Montana real estate exam.
Related Montana Real Estate Math Questions
- A Missoula rental property has $85,000 gross annual income, 8% vacancy, $32,000 operating expenses, and a 7.5% cap rate. What is the estimated property value?
- A Montana lender charges 2 origination points on a $195,000 loan. What is the dollar amount of the origination fee?
- A Montana rental property has potential gross income of $54,000, vacancy of 6%, operating expenses of $18,000, and debt service of $14,400. What is the debt service coverage ratio (DSCR)?
- A Montana property's gross rent multiplier (GRM) is 10. Monthly gross rent is $1,800. What is the estimated property value?
- A Montana property manager charges a leasing fee of one month's rent for placing a new tenant. The monthly rent is $1,350. If the property is vacant for 6 weeks before the new tenant moves in, what is the total cost of the vacancy (including leasing fee)?
- A rectangular parcel measures 330 feet × 660 feet. How many acres is this?
- A buyer in Great Falls puts 20% down on a $240,000 home. What is the loan amount?
- A Montana broker sold 24 properties in a year averaging $210,000 per sale with an average commission of 5.5%. What was the broker's total commission income?
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →