Real Estate Math Questions & Cheat Sheet (December 2024) 50+

The first thing you’ll have to do is take the commission of $4,500 and divide it by the 35% share of the commission. So 4,500/.35 which equals 12,857.14 rounding to the nearest hundredth. Which is the total commission received from the sale of the property. From there since, it's asking for what the property sold for all we have to do is take that total commission received and divide it by the 3% gross commission. So 12,857.14/ .03 which equals 428,571.33.

The formula for finding commission is pretty simple. Just times whatever percentage you have by the total price of the house. So in this case take $2,800,000 and multiply it by .06 or 6%. Doing the math that gives you $168,000.00

First things first we have to find out how much commission the broker receives total. In order to do that we take the selling price and multiply it by the commission percentage. So in this case $465,000 x .06 = $27,900. That $27,900 is what your broker receives total. From there you receive 55% of that. So take $27,900 x .55 = $15,345. So in this transaction you receive a $15,345 commission.

This is a net listing. A net listing is when an owner sets a minimum amount that he or she wants to receive from the sale of the property and lets the broker keep the difference. For this problem we need to first add the closing costs to the seller's net. So $150,000 + $2,500 = $152,500. From there we have to take the sales price and subtract it by the commission percentage. So 100% sales price - 6% commission = 94%. From there do the following: $152,500 / 94% = $162,234.04 or $162,234 when rounded to the nearest dollar. That $$160,526, is the price the property must sell for under the numbers and conditions given.

To find the original cost first you have to subtract 100% (total cost) by 25% (total depreciation) which gives us 75% (today's value). That means the value of the property is currently worth 75% of what it used to be. Then take today's price of $150,000 and divide it by 75% which gives us $150,000 (our original cost). The value being lost of ten years is irrelevant in this instance, as it's just asking for the original cost. Alternatively, to find your answer, you could divide the value of the property today and divide it by each option to find out which option matches 75% or .75.

$6,500 annual interest / $150,000 loan = .04333 or 4.33% interest rate. The interest rate on the loan is 4.33%.

First things first we have to find out how much commission the broker receives total. In order to do that we take the selling price and multiply it by the commission percentage. So in this case $500,000 x .03 = $15,000. That $15,000 is what your broker receives total. From there you receive 75% of that. So take $15,000 x .75 = $11,250. So in this transaction you receive a $11,250 commission.

In this problem we have to find the annual property taxes. First off we have to find the assessed value. In order to do that we have to take the market value which is $800,000 and then multiply it by the assessment rate which is 25%. So $800,000 x .25 = $200,000. Now that we the assessed value we must subtract the deductions. So $200,000 - $50,000 = $150,000. The next step is to utilize mills. The mill rate is the amount of tax payable per dollar of the assessed value of a property. So we have to multiply the assessed value by the mill rate which is $150,000 x .02275 = $3,412.50 So the annual property taxes on the property is $3,412.50.

In order to find the original cost of the house we have to look at things from a different perspective. $355,000 is 100% of the current price. Add 8% to that and it gives us 108%. From there convert that into a decimal which is 1.08 and then divide the selling price with that number (Since we are looking for a smaller number). So 355,000/1.08 which equals $328,703.70. $328,703.70 was the original cost of the house.

The answer is $3078 . According to the 28/36 rule, she would need to spend less than $3078 in total household debt a month to qualify for most loans. In 28/36 problems you multiply by .28 or .36. If its total household debt, then you multiple by .36, meaning in this problem we need to multiply by .36. So $8,550 x .36 = $3078 .

100,000 * 1.10 = 110000 (current price) current price minus the original which gives us 10,000 which is the total it appreciated for. Then we have to divide because it's asking us per year. So 10,000 divided by 5 years = 2,000 a year. Meaning the property appreciated 2,000 per year.

In this problem we have to find the annual property taxes. First off we have to find the assessed value. In order to do that we have to take the market value which is $200,000 and then multiply it by the assessment rate which is 45%. So $200,000 x .45 = $90,000. The next step is to utilize mills. The mill rate is the amount of tax payable per dollar of the assessed value of a property. So we have to multiply the assessed value by the mill rate which is $90,000 x .065 = $5,850 So the annual property taxes on the property is $5,850.

This is a net listing. A net listing is when an owner sets a minimum amount that he or she wants to receive from the sale of the property and lets the broker keep the difference. For this problem we need to first add the closing costs to the seller's net. So $47,300 + $1,150 = $48,450. From there we have to take the sales price and subtract it by the commission percentage. So 100% sales price - 5% commission = 95%. From there do the following: $48,450 / 95% = $51,000. That $51,000, is the price the property must sell for under the numbers and conditions given.

First we need to find the total square footage. To do this multiply the dimensions. So 100 ft x 120 ft which equals 12,000 ft^2. So the lot is 12,000 square feet. From there we just multiple the square feet by the price. So 12,000 x $5 = $60,000. The lot would cost $60,000.00.

In this problem we have to find the annual property taxes. First off we have to find the assessed value. In order to do that we have to take the market value which is $450,000 and then multiply it by the assessment rate which is 25%. So $450,000 x .25 = $112,500. The next step is to utilize mills. The mill rate is the amount of tax payable per dollar of the assessed value of a property. So we have to multiply the assessed value by the mill rate which is $112,500 x .07050 = $7,931.25 So the annual property taxes on the property is $7,931.25.

This is a net listing. A net listing is when an owner sets a minimum amount that he or she wants to receive from the sale of the property and lets the broker keep the difference. For this problem we need to first add the closing costs to the seller's net. So $100,000 + $2,500 = $102,500. From there we have to take the sales price and subtract it by the commission percentage. So 100% sales price - 5% commission = 95%. From there do the following: $102,500 / 95% = $107,894.73 or $107,895 when rounded to the nearest dollar. That $107,895, is the price the property must sell for under the numbers and conditions given.

In this problem we have to find the annual property taxes. First off we have to find the assessed value. In order to do that we have to take the market value which is $800,000 and then multiply it by the assessment rate which is 12%. So $800,000 x .12 = $96,000. The next step is to utilize mills. The mill rate is the amount of tax payable per dollar of the assessed value of a property. So we have to multiply the assessed value by the mill rate which is $96,000 x .02250 = $2,160.00. So the annual property taxes on the property is $2,160.00.

In order to figure this out we can do one of two things. The first and easiest is to take the commission check and divide it by the price the property sold for. So do this: 137,500 / 2,500,000 = .055 and remember .055 is actually 5.5%. So by doing that we can say the broker received a 5.5% commission on this transaction. The second way we could solve for the percentage is take the choices below and multiple them by the price of the property and whichever option matches the check is the correct answer!

This is a standard proration problem. The first thing you want to look for is any terms specifying when, terms like annual, monthly, quarterly. Because the seller paid for the full year (annual) and sold the property, the buyer (Jon) will then owe the seller the remaining months of taxes. The first thing we do is divide $6000 by 12 to find the monthly tax payments. $6000 / 12 = $500. So $500 is the sellers monthly real estate tax. From there we look at what month closing occurs in. Jon closed in March. Which means the Jon owes the seller for the months of March, April, May, June, July, August, September, October, November, and December. Which is a total of 10 months. So from there all we do is multiply $500 by 10 which equals = $5,000. Jon owes the seller $5,000.

The formula for finding commission is pretty simple. Just times whatever percentage you have by the total price of the house. In this case, they give us the rate and what the broker received so we have to adjust the steps. In order to find the commission, you can take $24,000 and divide it by the percentage which is .06 making your total $400,000. Alternatively, you can take the answers below and multiply each one by .06 and whichever matches the broker's commission is the correct answer.

Remember in terms of commission it is included in the sales price not in addition to. So for this problem its simply $255,000 x .05 = $12,750.

To find the total appreciation, multiply the original price by the total appreciation percentage (plus 100%). It should look like this: $40,000 x 145% or 1.45= $58,000. The lot is worth $58,000 today.

Semiannual means two. Meaning we have to double $1000 which gives us $2000 for our annual interest. From there we divide annual interest by the loan amount. $2000 annual interest / $80,000 loan = .025 or 2.5% interest rate. The interest rate on the loan is 2.5%.

To find the original cost first you have to subtract 100% (total cost) by 20% (total depreciation) which gives us 80% (today's value). That means the value of the property is currently worth 80% of what it used to be. Then take today's price of $180,000 and divide it by 80% which gives us $225,000 (our original cost). The value being lost of three years is irrelevant in this instance, as it's just asking for the original cost. Alternatively, to find your answer, you could divide the value of the property today and divide it by each option to find out which option matches 80% or .80.

This is a standard proration problem. The first thing you want to look for is any terms specifying when, terms like annual, monthly, quarterly. Because the seller paid for the full year (annual) and sold the property, the buyer (James) will then owe the seller the remaining months of taxes. The first thing we do is divide $3000 by 12 to find the monthly tax payments. $3000 / 12 = $250. So $250 is the sellers monthly real estate tax. From there we look at what month closing occurs in. James closed in June. Which means the James owes the seller for the months of June, July, August, September, October, November, and December. Which is a total of 7 months. So from there all we do is multiply $250 by 7 which equals = $1,750. James owes the seller $1,750.

In this problem we have to find the annual property taxes. First off we have to find the assessed value. In order to do that we have to take the market value which is $350,000 and then multiply it by the assessment rate which is 25%. So $350,000 x .25 = $87,500. The next step is to utilize mills. The mill rate is the amount of tax payable per dollar of the assessed value of a property. So we have to multiply the assessed value by the mill rate which is $87,500 x .02750 = $2,406.25. So the annual property taxes on the property is $2,406.25.

Okay so first things first we have to find the total commission received by the firm. So take 350,000 and multiply it by .03 which equals 10,500. From there we can find what the agent is going to receive by multiplying his share percentage to the total he’ll receive. So 10,500 multiplied by .50 which equals 5,250. So the agent would receive $5,250.

For all cost/price per square foot/acre/front foot problems when converting measurements to a cost or value per unit, divide the cost/value by the unit of measurement. In real estate, front foot or the frontage is a property measurement of the front footage of a parcel of property adjoining the street or water. When a lot is described, the front feet are always given first. So in this case you have to do the following: 75,000/50 = 1,500. Meaning the price is $1,500 per front foot.

Gross Rent Multiplier is the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities. More specifically its a measure of the value of an investment property that is obtained by dividing the property's sale price by its gross annual rental income. The math looks like this: Gross Rent Multiplier = Property Price / Gross Rental Income. So in our case it would be 850,000/55,000 which equals 15.45!

For starters, we have to identify what each number is in the problem. Our property value is $120,000, the bank loan or LTV is for 85%, and lastly the earnest deposit is for $8,000. With these numbers we can calculate how much is due at closing. First take 100% value - 85% LTV = 15%. Which means there is a 15% down payment. From there we have to take our property value and multiply it by our percentage. So in our case: $120,000 x 15% = $18,000. $18,000 is our total down deposit, but wait! The buyer already paid $8,000 in earnest money so you have to subtract that to find exactly how much is due at closing. So that looks like this: $18,000 - $8,000 = $10,000. Which means $10,000 is due at closing.

This is a net listing. A net listing is when an owner sets a minimum amount that he or she wants to receive from the sale of the property and lets the broker keep the difference. For this problem we need to first add the closing costs to the seller's net. So $75,000 + $2,000 = $77,000. From there we have to take the sales price and subtract it by the commission percentage. So 100% sales price - 6% commission = 94%. From there do the following: $77,000 / 94% = $81,914.89 or $81,915 when rounded to the nearest dollar. That $81,915, is the price the property must sell for under the numbers and conditions given.

Gross Rent Multiplier is the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities. More specifically its a measure of the value of an investment property that is obtained by dividing the property's sale price by its gross annual rental income. The math looks like this: Gross Rent Multiplier = Property Price / Gross Rental Income. So in our case it would be 300,000/25,000 which equals 12!

First we need to find the total square footage. To do this multiply the dimensions. So 200 ft x 400 ft which equals 80,000 ft^2. So the lot is 80,000 square feet. From there we just multiply the square feet by the price. So 80,000 x $8 = $64,000. The lot would cost $640,000.00

In order to find the original cost of the house we have to look at things from a different perspective. $450,000 is 100% of the current price. Add 2% to that and it gives us 102%. From there convert that into a decimal which is 1.02 and then multiply the selling price with that number (Since we are looking for a larger number). So 450,000 x 1.02 which equals $459,000.00. $459,000.00 was the original cost of the house.

In this problem we have to find the annual property taxes. First off we have to find the assessed value. In order to do that we have to take the market value which is $750,000 and then multiply it by the assessment rate which is 25%. So $750,000 x .25 = $187,500. The next step is to utilize mills. The mill rate is the amount of tax payable per dollar of the assessed value of a property. So we have to multiply the assessed value by the mill rate which is $187,500 x .02350 = $4,406.25. So the annual property taxes on the property is $4,406.25.

In this problem we have to find the annual property taxes. First off we have to find the assessed value. In order to do that we have to take the market value which is $500,000 and then multiply it by the assessment rate which is 25%. So $500,000 x .25 = $125,000. Now that we have the assessed value we must subtract the deductions. So $125,000 - $25,000 = $100,000. The next step is to utilize mills. The mill rate is the amount of tax payable per dollar of the assessed value of a property. So we have to multiply the assessed value by the mill rate which is $100,000 x .05575 = $5,575. Which is the annual property taxes. From there we have to divide by 12 to give us the monthly. So $5,575 / 12 = $464.58.

Gross Rent Multiplier is the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities. More specifically its a measure of the value of an investment property that is obtained by dividing the property's sale price by its gross annual rental income. The math looks like this: Gross Rent Multiplier = Property Price / Gross Rental Income. So in our case it would be 2,000,000/105,000 which equals 19.05!

In this question its pretty straight forward. You can disregard the fact the property sold for $300,000. Its just added information to throw you off. What matters in this problem is what your broker received a check for. In this case it was $18,000. All you have to do to find out what your commission was; is multiply the check by your percentage. So in this case the math would look like this: $18,000 x .4 = $7,200.00

This is a standard proration problem. The first thing you want to look for is any terms specifying when, terms like annual, monthly, quarterly. Because the seller paid for the full year (annual) and sold the property, the buyer (Newton) will then owe the seller the remaining months of taxes. The first thing we do is divide $2000 by 12 to find the monthly tax payments. $2000 / 12 = $166.67. So $166.67 is the sellers monthly real estate tax. From there we look at what month closing occurs in. Newton closed in September. Which means the Newton owes the seller for the months of September, October, November, and December. Which is a total of 4 months. So from there all we do is multiply $166.67 by 4 which equals = $666.68. Newton owes the seller $666.68.

The home appreciated $100,000. To find total appreciation do the following: $275,000 - $175,000 = $100,000. With the total appreciation you must divide that by the original amount. Which will look like this $100,000 / $175,000 = .57. From there you take the .57 and divide it by 10 years which equals .057 or 5.7%. Which means the annual rate of appreciation is 5.7%

The answer is $1540. According to the 28/36 rule, he would need to spend less than $1540 in housing costs a month to qualify for most loans. In 28/36 problems you multiply by .28 or .36. If its housing costs, then you multiple by .28, meaning in this problem we need to multiply by .28. So $5,500 x .28 = $1540.

In this problem we have to find the annual property taxes. First off we have to find the assessed value. In order to do that we have to take the market value which is $250,000 and then multiply it by the assessment rate which is 15%. So $250,000 x .15 = $37,500. The next step is to utilize mills. The mill rate is the amount of tax payable per dollar of the assessed value of a property. So we have to multiply the assessed value by the mill rate which is $37,500 x .02750 = $1,031.25. So the annual property taxes on the property is $1,031.25

In order to figure this out we can do one of two things. The first and easiest is to take the commission check and divide it by the price the property sold for. So do this: 17,325 / 330,000 = .0525 and remember .0525 is actually 5.25%. So by doing that we can say the broker received a 5.25% commission on this transaction. The second way we could solve for the percentage is take the choices below and multiple them by the price of the property and whichever option matches the check is the correct answer!

Using the 28/36 rule we can take Mr. Wilsons monthly income ($7,000) and multiply it by .28. That gives us $1,960. Knowing this, we can assume he can afford something under $1,960. In our instance that would be the first house ($800 a month) or the second house ($1,000 a month).

In order to find the original cost of the house we have to look at things from a different perspective. $280,000 is 100% of the current price. Add 9% to that and it gives us 109%. From there convert that into a decimal which is 1.09 and then divide the selling price with that number (Since we are looking for a smaller number). So 280,000/1.09 which equals $256,880.73. $256,880.73 was the original cost of the house.

Since it's monthly we must multiply $500 by 12. Which gives us $6,000 and our annual interest. From there we divide annual interest by the loan amount. $6,000 annual interest / $300,000 loan = .02 or 2% interest rate. The interest rate on the loan is 2%.

First we need to find the total square footage. To do this multiply the dimensions. So 100 ft x 150 ft which equals 15,000 ft^2. So the lot is 15,000 square feet. From there we divide the price by the total square feet. So $300,000 / 15,000 = $20. The lot would cost $20 per square foot.

Semiannual means two. Meaning we have to double $450 which gives us $900 for our annual interest. From there we divide annual interest by the loan amount. $900 annual interest / $10,000 loan = .09 or 9% interest rate. The interest rate on the loan is 9%.

For all cost/price per square foot/acre/front foot problems when converting measurements to a cost or value per unit, divide the cost/value by the unit of measurement. In real estate, front foot or the frontage is a property measurement of the front footage of a parcel of property adjoining the street or water. When a lot is described, the front feet are always given first. So in this case you have to do the following: 125,000/100 = 1,250. Meaning the price is $1,250 per front foot.

No tricks here. The home appreciated $9,000. To find total appreciation do the following: $199,000 - $190,000 = $9,000.