Real Estate Math
A Utah investor receives a seller contribution of $12,000 toward closing costs on a $400,000 purchase. What percentage of the purchase price is this?
A3%✓ Correct
B2.5%
C4%
D1.5%
Explanation
Contribution percentage = $12,000 ÷ $400,000 = 0.03 = 3%. Using the values given ($12,000, $400,000), apply the appropriate formula.. The correct answer is 3%.. This is a common calculation on the Utah real estate exam.
Related Utah Real Estate Math Questions
- A commercial property is valued at $875,000 using a cap rate of 7%. If the NOI increases by $5,000 per year, what is the new estimated value at the same 7% cap rate?
- A commercial property has an NOI of $72,000 and is valued using a 6.5% cap rate. What is its value?
- A Utah real estate team of 5 agents closes an average of 3 transactions per agent per month at an average price of $400,000 with a 6% commission split evenly. How much does the team gross per month?
- A Utah property is depreciated for income tax purposes over 27.5 years (residential). A $275,000 building (land excluded) has an annual tax depreciation of:
- A 30-unit apartment building in Salt Lake City has a vacancy rate of 8%. How many units are occupied?
- An investor pays $850,000 for a 10-unit apartment building in Salt Lake City. Each unit rents for $950/month. What is the annual gross income?
- A listing agreement in Utah specifies a 90-day listing period. If signed on January 1, when does the listing expire?
- A buyer receives a seller credit of $8,500 at closing. The closing costs are $14,200. How much must the buyer bring to closing in addition to their down payment of $55,000?
Practice More Utah Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Utah Quiz →