Real Estate Math
A Washington property's annual insurance premium is $2,400 and property taxes are $5,760. At closing on June 1, the seller's insurance is paid through December 31. How much is credited to the seller for insurance?
A$0 (insurance is not prorated)
B$1,400✓ Correct
C$1,480
D$2,400
Explanation
Insurance prepaid by seller covers July 1–Dec 31 = 7 months. Monthly insurance = $2,400 ÷ 12 = $200.
Related Washington Real Estate Math Questions
- 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?
- A Washington commercial space is 4,200 SF at $18.50/SF/year. What is the monthly rent?
- A Washington property sells for $875,000. Using REET's tiered rates: 1.10% on the first $500,000 and 2.75% on the portion above $500,000. What is the total REET?
- A property has a gross income of $180,000 per year. The GRM for similar properties is 10.5. What is the estimated property value using the GRM?
- A Washington home sells for $650,000. The seller pays Washington's Real Estate Excise Tax (REET) of 1.28% on the first $500,000 and 2.75% on the amount above $500,000. What is the total REET?
- A Washington commercial building leases at $28/SF/year on 4,500 SF with a 5% annual rent increase. What is the rent at the start of year 3?
- A Washington buyer puts 5% down on a $410,000 home. The lender charges 0.8% monthly PMI on the loan. What is the monthly PMI amount?
- A Washington commercial lease provides for annual rent increases equal to the greater of 2% or CPI. CPI for the year was 1.5%. If the base rent was $6,000/month, what is the new monthly rent?
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →