Certified Relocation Professional (CRP) Practice Exam

What is the typical estimate of the monthly cost to keep a home in inventory?

1. 0.5% of its purchase price

2. 1.5%

3. 2.5%

4. 4%

The correct answer is: 1.5%

A typical estimate of the monthly cost to keep a home in inventory is around 1.5% of its purchase price. This percentage reflects the various expenses associated with maintaining a property while it is on the market, which can include mortgage payments, property taxes, insurance, utilities, maintenance, and potentially homeowners association fees, among other costs. This estimate is grounded in industry practices and helps properties remain competitively appealing and functional during the selling process. While other percentages may be relevant or cited in different contexts, the 1.5% figure is commonly acknowledged in the real estate industry as a practical estimate of these ongoing expenses. The higher percentages might reflect more aggressive market conditions or additional costs associated with specific situations, making them less typical for general calculations regarding inventory costs.