Real Estate Math
A Wisconsin seller purchased a home for $175,000 and made $25,000 in improvements. The home sells for $240,000 with a 5% commission and $4,500 in other closing costs. What is the seller's net profit?
A$22,500
B$23,500✓ Correct
C$23,000
D$24,000
Explanation
Total cost basis = $175,000 + $25,000 = $200,000. Commission = $240,000 × 5% = $12,000. Net proceeds = $240,000 − $12,000 − $4,500 = $223,500. Profit = $223,500 − $200,000 = $23,500.
Related Wisconsin Real Estate Math Questions
- A Wisconsin property is listed at $449,000 and appraised at $445,000. A lender will loan 80% of the appraised value. What is the minimum down payment if the buyer pays the listing price?
- A Wisconsin property owner wants to build a garage that costs $28,000. The appraiser estimates it will add $21,000 in value. This project illustrates the principle of:
- A Wisconsin property has 4 units renting at $1,050/month each. Vacancy is 6% and annual expenses are $15,000. What is the annual NOI?
- A Wisconsin seller receives $267,000 net after paying a 6% commission. What was the sale price?
- A Wisconsin homeowner wants to add a deck costing $15,000. An appraiser estimates the deck will add $9,000 in value. What is the cost-value ratio for this improvement?
- A Wisconsin investor purchases a 4-unit property. Each unit rents for $1,100/month. The vacancy rate is 5%. Annual operating expenses are $14,000. What is the NOI?
- A Wisconsin property has an annual NOI of $48,000 and is valued at $600,000. What is the overall capitalization rate?
- A Wisconsin rectangular lot is 1 acre. Given that 1 acre = 43,560 sq ft, if the lot is 165 feet wide, how deep is it?
Practice More Wisconsin Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Wisconsin Quiz →