Real Estate Math
A NJ property's assessed value is $375,000 at a 95% equalization ratio. What is the estimated market value?
A$356,250
B$394,737✓ Correct
C$375,000
D$420,000
Explanation
Market Value = Assessed Value ÷ Equalization Ratio = $375,000 ÷ 0.95 = $394,736.
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Key Terms to Know
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.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
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