David Saks

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Real Estate Practice : Lesson 4005

A buyer paid $460,000 for the house.

The lot was valued at $65,000.

The mortgage was for $200,000.

After all is said and done, how much equity does the homeowner have in the place ?


A. $260,000

First of all, the value of the lot has nothing to do with the calculation, so let's hope you don't figure it with eithyer a simple mathematical addition or subtractioin.

Therefore, let's just subtract the value of the loan from the cost of the home (460k-200k) and we see that we've got $260,000 in equity in the house.

Remember, the market value of the house minus the amount remaining on the mortgage is the equity.

Or mv-dbt=equity.

David Saks

Time&Temp Memphis

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Comment balloon 0 commentsDavid Saks • March 30 2015 12:08AM
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