Real Estate Math

A Washington property's asking price is $895,000. An offer comes in at $865,000. If the buyer offers $9,000 in earnest money, what percentage of the offer price is the earnest money?

A1.00%
B1.04%✓ Correct
C1.01%
D1.09%

Explanation

Earnest money % = $9,000 ÷ $865,000 = 0.01040 = 1.04%. Using the values given ($895,000, $865,000), apply the appropriate formula.. The correct answer is 1.04%.. This is a common calculation on the Washington real estate exam.

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