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Rodney Downs, Making your dreams a realty. (Infinite Real Estate Group)

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Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Seller would pay zero!!!  A buyer may pay $407,869 if the seller wants to sell it with the numbers above in mind.  Trick question.  Hey when I write up questions for CE classes I throw a few tricks in there, mostly for fun (of which makes them all laugh).  How you doing on your studies Rodney?

Jan 29, 2021 03:25 PM
Rainmaker
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Questions like this one serve no useful purpose. In fact, they sow discord. I saw these on the Real Estate exam, Psych testing and riddle scenarios.....

Jan 29, 2021 02:48 PM
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Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Unless the inference is that  the seller sold it for $163,000 and they want to know that he bought it for $65,140

Jan 29, 2021 06:06 PM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Seller doesn't pay anything.  Buyer pays for the land. :)

Jan 29, 2021 03:48 PM
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Rodney,

Seller owns the land, he will pay nothing...Trick question.  A

Jan 29, 2021 04:29 PM
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

To answer your question...no, this makes no sense. The seller already owns the land.

Jan 29, 2021 07:18 PM
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Where did you get that question?  Sounds like a lot of traps in this.

Jan 29, 2021 06:11 PM
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John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

No. The question, as you have typed it, does not make sense.

Jan 30, 2021 07:03 AM
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Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Wow, imagine a buyer buying land for $163K and having it earn 14% per year compounded! Yikes, now that would be quite the profit. I'd want to sell that 7 years later!

But as already mentioned, no, that question does not make sense the way it is written.

Jan 30, 2021 05:42 AM
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Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It doesn't appear to be worded properly, especially since if the land is sold it is already sold so the seller wouldn't be paying extra for it, right?  It seems like it should say how much could it be sold for in 7 years if the value went up that much each year.

Jan 30, 2021 05:14 AM
Rainmaker
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Raymond E. Camp
Ontario, NY

Sounds more like a government officials question!

Jan 30, 2021 04:51 AM
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Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Makes no sense. Maybe they meant " how much did seller pay for it" ? Which still makes no sense because that would put sale price 7 years ago close to $50,000.00

Jan 30, 2021 04:11 AM
Rainmaker
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Steve Higgins
RE/MAX Kelowna - Kelowna, BC

Seller doesn’t pay for his own property. Buyer would pay.

Jan 29, 2021 05:42 PM
Rainmaker
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Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

14% compunded.....WOOOOOWWW! Sign me up!
I really do like the business model of selling folks stuff they already own. 
Hmmmm, that actually sounds like how government at levels work.

 

Jan 30, 2021 06:10 AM
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

??? how would seller pay for his own land?

Jan 30, 2021 05:44 AM
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Unless you are the accountant that has to calculate the captial gains tax, who cares? Yes it is a bit of a mathematical puzzle poorly worded!

Jan 30, 2021 04:40 AM
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Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Word problems!  

Jan 30, 2021 07:30 AM
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Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Seller paid $163,000.  New buyer will pay ???

Jan 30, 2021 06:23 AM
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Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

I do not appreciate "trick questions"  nor "questions just for fun" during a crucial exam such as real estate licensing.   A complete waste of time and energy.

 

Jan 30, 2021 09:52 AM
Rainer
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Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

I'm afraid I'm going to echo others.  Buyer should pay and not seller.  

Jan 30, 2021 09:36 AM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

One thing about these dumb ass questions is that we must read carefully and dissect every word. Follow the snail trail ... back to SOLD for $163,000. 

Is this a multiple-choice question?

Jan 30, 2021 08:39 AM
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Anna to the rescue! LOL

Jan 30, 2021 08:24 AM
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Alan May
Jameson Sotheby's International Realty - Evanston, IL
Home is where the hearth is.

If seller keeps it for seven years... then the property didn't done sold did it?

Jan 30, 2021 06:37 AM
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Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

Rodney Downs 

This question DOES make sense as an investment hypothetical.   If a seller wants to sell the parcel in 7 years at 14% annual compounded interest for $163,000, how much will the seller pay for it?

Rounded answer:  $65,000

Jan 30, 2021 01:14 PM
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Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

How much will seller pay- the annual property taxes X 7.  He maybe doesn't need hazard insurance so exlcude that. The question does not say how much a willing buyer will buy it for. It compounding appreciation only matters when the seller actually sells the land then he might owe some income taxes, depending and the transfer fees and the property taxes.

Jan 30, 2021 08:54 AM
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Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

The seller is his own best buyer!! FREE!

Jan 31, 2021 12:10 AM
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Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

$163,000, although the Seller will realize approximately $244,000 interest if sold upon the 7th year of ownership. Nonetheless the most they ever paid was the original sale price of $163,000.

Jan 30, 2021 10:51 AM
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Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Seller or buyer? Land does not depreciate, only structures on it do. As regards appreciation, it would be dictated by market conditions, not by a formula. The seller could put on any price he wants. The buyer would decide what the land is worth to him in the then current market. If the buyer and seller agree on a price and the sale happens, the value of the land would be then established by that market price.

Jan 31, 2021 06:44 AM
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

The seller pays nothing as they already own it

Jan 31, 2021 06:01 AM
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Rodney Downs
Infinite Real Estate Group - Springville, UT
Making your dreams a realty.

I couldnt figure out just which words to change to ask the correct answer so I just chose A to see the answer. Here it is below.  The explanation was just as confusing to me and the question. I dont know whjat some of the symbols in the equation mean.   Am I supposed to KNOW that formula as a realtor?

Feb 01, 2021 07:51 AM
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