Real Estate Math
A Washington home was purchased for $400,000 five years ago. It is now worth $530,000. What is the total return on the original purchase price?
A24.5%
B32.5%✓ Correct
C33.3%
D35.0%
Explanation
Return = ($530,000 − $400,000) ÷ $400,000 = $130,000 ÷ $400,000 = 32.5%.
Related Washington Real Estate Math Questions
- A Washington investor purchases a property for $650,000, makes $75,000 in improvements, and sells for $850,000. What is the total profit (before tax)?
- A Seattle commercial lease has a base rent of $35/SF/year and annual CPI escalations. If the CPI is 3.2% in year 2, what is the year 2 rent per SF?
- A Washington homeowner has a $350,000 loan at 6.5% interest only for the first year. What is the monthly interest payment?
- A Washington income property has a NOI of $55,000 and the investor requires a 7% cap rate. What is the maximum the investor should pay?
- A Washington seller owes $325,000 on their mortgage and pays 5.5% commission on a $485,000 sale. Net proceeds to the seller (ignoring other closing costs) are:
- A Washington buyer's closing costs are 3% of the purchase price. The home costs $490,000 with 10% down. What are the approximate closing costs?
- A Washington property tax bill is $6,500 per year. The annual taxes are prorated at closing, and the seller has already paid the full year. The buyer closes on August 1. How much does the escrow company credit the seller?
- A Washington property sold for $620,000 with 5% commission. The listing broker and selling broker split the commission 50/50. The listing agent gets 70% of the listing broker's share. What does the listing agent receive?
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →