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Questions and Answers
A developer purchases 5 acres of land to build houses. What is the total square footage of the land?
A developer purchases 5 acres of land to build houses. What is the total square footage of the land?
- 87,120 square feet
- 43,560 square feet
- 261,360 square feet
- 217,800 square feet (correct)
A real estate broker sells a property for $250,000 and earns a 3% commission. What is the commission amount?
A real estate broker sells a property for $250,000 and earns a 3% commission. What is the commission amount?
- $5,000
- $2,500
- $7,500 (correct)
- $10,000
A property has 75 feet of frontage on a street. If similar properties in the area sell for $500 per front foot, what is the estimated value of the frontage?
A property has 75 feet of frontage on a street. If similar properties in the area sell for $500 per front foot, what is the estimated value of the frontage?
- $18,750
- $37,500 (correct)
- $37,500,000
- $3,750
A rental property generates $60,000 in gross income annually and has $20,000 in operating expenses. What is the net income?
A rental property generates $60,000 in gross income annually and has $20,000 in operating expenses. What is the net income?
A farmer owns a field that measures 2 hectares. How many square meters does the field cover?
A farmer owns a field that measures 2 hectares. How many square meters does the field cover?
A borrower takes out a $200,000 mortgage at an annual interest rate of 5%. What is the annual interest paid on the loan?
A borrower takes out a $200,000 mortgage at an annual interest rate of 5%. What is the annual interest paid on the loan?
A homebuyer obtains a $300,000 mortgage and pays 2 points at closing. What is the dollar amount paid for the points?
A homebuyer obtains a $300,000 mortgage and pays 2 points at closing. What is the dollar amount paid for the points?
An investor makes a principal payment of $5,000 on their mortgage. If the original loan was $250,000, what is the remaining loan balance after the principal payment?
An investor makes a principal payment of $5,000 on their mortgage. If the original loan was $250,000, what is the remaining loan balance after the principal payment?
A city has a total taxable assessed value of $500 million and needs to collect $10 million in real property taxes. What is the real property tax rate, expressed in dollars per hundred?
A city has a total taxable assessed value of $500 million and needs to collect $10 million in real property taxes. What is the real property tax rate, expressed in dollars per hundred?
A property has a gross income of $80,000 and operating expenses (excluding interest) of $30,000. The annual interest payment on the mortgage is $10,000. What is the property's Net Operating Income before considering the interest payment?
A property has a gross income of $80,000 and operating expenses (excluding interest) of $30,000. The annual interest payment on the mortgage is $10,000. What is the property's Net Operating Income before considering the interest payment?
Flashcards
Acre
Acre
A measure of land equaling 43,560 square feet.
Commission
Commission
A sum due a real estate broker for services in that capacity.
Front Foot
Front Foot
Refers to the length of a parcel facing a street.
Gross Income
Gross Income
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Net Income
Net Income
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Hectare
Hectare
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Interest
Interest
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Point
Point
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Principal
Principal
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Real Property Tax Rate
Real Property Tax Rate
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Study Notes
- Acre: Land measurement equaling 43,560 square feet.
- Commission: Payment due to a real estate broker for their services.
- Front Foot: The length of a property that faces a street.
- Gross Income: The total income from a property before expenses are deducted.
- Net Income: The income remaining after expenses are subtracted.
- Hectare: An area equivalent to 10,000 square meters.
- Interest: Fee paid by a borrower for the use of money.
- Point: One percent of a loan amount; for instance, one point on a $100,000 loan is $1,000.
- Principal: The original sum of money that is lent or invested, which accrues interest.
- Real Property Tax Rate: Calculated by dividing the tax levy by the total taxable assessed value; expressed in dollars per thousand, dollars per hundred, or mills.
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Description
Definitions of real estate and finance terms. Includes land measurement, payments, and property valuation. Covers concepts like acreage, commission, gross and net income, interest, and property tax rates.
