Term
| A store generates $50,000 / month. The lease calls for 1.5% percentage rent. Monthly rent amount? |
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Definition
| ($50,000 x .015) = $750 / month |
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Term
| An apartment's rent is scheduled to increase by 6%. If the current rent is $450, the new rent is: |
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Definition
| $450 x (100% + 6%) = $450 x 106% = $477 |
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Term
| true or false: 1 mill = $.001; a mill rate of 1 mill per $1,000 = .1%; a 1% tax rate = 10 mills |
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Definition
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Term
| A tax rate on a house with a $200,000 taxable value is 7 mills per thousand dollars of assessed valuation. What is the tax? |
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Definition
| Tax = ($200,000 ÷ 1,000) x 7 mills = $1,400 |
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Term
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Definition
| Assessed valuations – Exemptions |
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Term
| A town has a total assessed valuation of $20,000,000 and exemptions of $4,000,000. What is the tax base? |
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Definition
| $20,000,000 - $4,000,000 = $16,000,000 |
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Term
| A town has a tax base of $160,000,000 and a budget (tax requirement) of $8,000,000. What is the tax rate? |
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Definition
| Tax rate = ($8,000,000 ÷ $160,000,000) = .05, or 5%, or 50 mills |
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Term
| Marcos Pizza has a percentage lease on its 1,500 SF space in the Ashwood Center. The terms are $1.25 / SF / month rent plus 2% of the store’s gross income. If monthly sales averaged $35,000 last year, how much annual rent did Marcos Pizza pay last year? |
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Definition
| Their fixed rent is (1,500 SF x $1.25/SF) x 12 months, or $22,500. The percentage rent is ($35,000 x .02) x 12, or $8,400. Total rent is ($22,500 + 8,400), or $30,900. |
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Term
| An apartment's rent is scheduled to increase by 8%. If the current rent is $950, the new rent will be what? |
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Definition
| $950 x (100% + 8%) = $950 x 108% = $1,026 |
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Term
| A tax rate on a house with a $300,000 taxable value is 11 mills per thousand dollars of assessed valuation. What is the tax? |
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Definition
| Tax = ($300,000 ÷ 1,000) x 11 mills = $3,300 |
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Term
| The village of Parrish has an annual budget requirement of $20,000,000 to be funded by property taxes. Assessed valuations are $400,000,000, and exemptions total $25,000,000. What must the tax rate be to finance the budget? |
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Definition
| The rate = budget / tax base. Thus, $20,000,000 / (400,000,000 – 25,000,000) = 5.33% |
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Term
| A $300,000 property sells at a 7% commission with a 50-50 co-brokerage split and a 60% agent split with her broker. What are total, co-brokerage, agent’s, and broker’s commissions? |
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Definition
Total commission = $300,000 x .07 = $21,000
Co-brokerage splits = $300,000 x .07 x .50 = $10,500
Agent split = $10,500 x .60 = $6,300
Agent’s broker’s split = $10.500 - 6,300 = $4,200 |
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Term
| A home sells for $260,000 and has a loan balance of $200,000 at closing. The commission is 7% and other closing costs are $2,000. What is the seller’s net |
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Definition
| Seller’s net = ($260,000 - ($260,000 x .07) - $2,000 - $200,000) = $39,800 |
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Term
| A homeseller wants to net $50,000. The commission is 7%, the loan payoff is $150,000, and closing costs are $4,000. What must the price be? |
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Definition
| Sale price = ($50,000 + $4,000 + $150,000) ÷ .93 = $219,355 |
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Term
| A $600,000 property sells at a 6% commission with a 50-50 co-brokerage split and a 50% agent split with her broker. What are total, co-brokerage, agent’s, and broker’s commissions? |
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Definition
Total commission = $600,000 x .06 = $36,000
Co-brokerage splits = $600,000 x .06 x .50 = $18,000
Agent split = $18,000 x .50 = $9,000
Agent’s broker’s split = $18.000 - $9,000 = $9,000 |
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Term
| A home sells for $460,000 and has a loan balance of $300,000 at closing. The commission is 7% and other closing costs are $4,000. What is the seller’s net? |
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Definition
| Seller’s net = ($460,000 price - ($460,000 x .07) commission - $4,000 closing costs - $300,000 loan balance) = $123,800 |
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Term
| A homeseller wants to net $80,000. The commission is 7%, the loan payoff is $200,000, and closing costs are $6,000. What must the price be? |
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Definition
| Sale price = ($80,000 net desired + 6,000 closing costs + 200,000 loan) ÷ .93 = $307,527 |
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