Real Estate Exam Math Practice Test 2023

A property measures 150 feet by 125 feet. The owner wants to add a 6- foot privacy fence around the entire property. A contractor says the cost is $1.25 per foot of fence plus $500 for the labor to install it. How much is the total quote from the contractor?

A purchaser contracts for a new home for $250,000 and, after making a 20% down payment, applies for a 30-year fixed-rate loan at the rate of 7.5%. At the settlement on April 10, the lender collects interest up to May 1. What is the interest charge to the buyer shown on the settlement statement?

The paint for the fence in question 1 is $4.00/gallon and covers 300 square feet. How much did the owner spend on paint for the entire fence?

An agent lists a seller’s house for 6 percent commission. The final agreed sales price is $234,500. How much commission did the seller pay?

Property taxes are paid annually in November for the calendar year. The closing is held on August 15 and the property taxes of $3,250 are prorated to date of closing. What entries are made on the settlement statement?

The seller paid $23,500 in commission to his agent. His house sold for $457,900. How much was the commission rate the agent charged?

A broker charges 5.5 percent on his client’s listing of $125,900. The selling agent’s client offers $125,000, which the seller accepts. The listing broker offers 60 percent of the commission earned to the selling broker. How much does the listing broker earn?

The broker earns $22,050 for his portion of the commission on a limited agency transaction. The commission is 7 percent. How much did the house sell for?

A lender charges 2 points origination fee on a home sale of $300,000 where the borrower uses a 90 percent loan to value (LTV) ratio. How much does the borrower pay for the loan?

The assessed value of a property is $450,000, and the tax rate is $.823 per hundred of value. What is the monthly escrow deposit that would be needed to assure having enough money on hand to pay the annual tax bill?

A buyer obtained a loan of $135,000 with a 9.25% interest rate for the purchase of a home. After paying the first monthly payment of $1,111.05, the remaining balance will be

How many acres are in the NW1⁄4of the NW1⁄4of the NW1⁄4and the N1⁄2 of the NE1⁄4of the NW1⁄4 of Section 24 of 2RN, 2TN of principal meridian #2?

A seller asks his broker to list his farmland at $57,000 per acre. He describes the property as 500 feet along the road and 750 feet deep. What’s the listing price?

A subdivider is required to have 2.25-acre lots at a minimum per the covenants, conditions, and restrictions (CCRs). How many lots can he have in a 76-acre parcel of farmland he just acquired?

The transfer tax on a parcel of land is $1.25 per $500 of value. The property sold for $130,000. How much is the transfer tax?

The transfer tax on a property is 30¢ per $250 of value. However, the first $10,000 of the sales price is exempt from taxes. The property sold for $80,000. How much is the transfer tax?

If the seller pays $150 in transfer tax on the sale of his property, and each unit is taxed at $1.25 per unit, how many taxing units does he have to pay?

Jerry Wright, the owner of a commercial building, estimates the depreciation of the physical plant at $15,000, the furniture and fixtures at $8,000, and the machinery at $7,500. If he is in the 40% bracket, his tax savings would be

A borrower pays $750 per month on a $100,000 fully amortized 30-year fixed loan at 6 percent interest. After the first payment, what is the remaining balance on the principal amount of his loan?

A broker and a sales agent agree to a split of 75/25, with the larger portion going to the sales agent. The broker allows the sales agent to list a property for 6 percent. The house sells for $134,900. Assuming limited agency occurred, how much does the broker receive as his portion?

A seller agrees with a broker to pay 5.5 percent commission plus an advertising fee of 0.5 percent. How much does the seller pay in commission on the sale of his $350,000 home?

A property sells for $150,000 and appraises at $155,000. However, it’s assessed at 90 percent of the sale price. The tax rate is 40 mills. What are the monthly taxes?

If a property’s monthly tax bill is $250 on the assessed value of $180,000, what is the tax rate?

A commercial seller wants to list his 5.25-acre rectangular property for sale. He commands the broker to list it at $5,000 per front foot along the main highway. The seller tells the broker the property is 295 feet deep. The broker, following his command, lists the property at

The metes and bounds legal description of a property is this: starting at the POB, east 200 feet, south 300 feet, west 375 feet, and north 325 feet back to the POB. The parcel of land lists for $125,000 per acre. How much is the most probable list price?

A borrower finds a loan with 80 percent loan to value (LTV) ratio for his $250,000 purchase. How much is down payment for the loan?

A borrower finds a loan with 80 percent LTV for his $250,000 purchase. How much is the loan amount?

A property owner sold her principal residence for $750,000. It had been acquired establishing a cost basis of $300,000. Assuming the cost of sale is 12% of contract price, what is the taxable gain to this owner?

The lender’s underwriting criteria would accept a payment to income ratio of 33% and a ratio that includes debt service of up to a maximum of 38% of monthly gross income. The applicant has an outstanding college loan payable at the rate of $250.00 per month and a car payment of $450 monthly. Gross annual income is established at $ 100,000 per annum. What is the maximum PITI the lender will approve?

Jeff and Alexandra Clancey have paid a total of $10,500 in mortgage interest and $1,500 in property taxes in this tax year. If they are in the 28% tax bracket, their tax savings is

In constructing her financial report, Noel Carpenter estimates that her real estate holdings have appreciated by 18% since purchase. If the original value was $585,000, what would her balance sheet show now?

Using the data from question 24, the borrower has to pay 2½ points to get the loan. How much money does he need to bring to closing, assuming no other fees?

Using the data from question 24, the borrower has to pay 2½ points to get the loan. How much money does he need to bring to closing, assuming no other fees?

If a borrower pays 1 point origination fee and 21⁄2 discount points for his 90 percent LTV on the purchase of $175,900, how much does the loan cost the borrower to acquire?

A borrower gets a loan with no equity required and pays $3,050 for the loan on the purchase of a $95,000 house. How many points does he pay in fees?

A borrower qualifies for a 75 percent LTV; however, he only has $42,000 as a down payment. How much loan can he acquire from the lender?

How much simple interest is paid on a loan amount of $150,000 at 4 percent interest?

A Federal Housing Administration-insured loan requires a 3.5 percent down payment. Your client finds a property for sale at $180,000. However, he successfully, with your help, negotiates a lower purchase price of $177,900. How much down payment is required for this deal?

A sales agent does a study of the neighborhood and finds the average list price is $175,000 but the average sales price is $172,500. He can conclude:

A client wants to sell his property for $150,000. After doing a thorough study of his neighborhood, the agent concludes that houses sell for, on average, 94 percent of the list price. What is a reasonable starting list price?

A salesperson has earned $120,000 in gross commissions this year. If the average commission is 2.6% per transaction, and the salesperson receives 60% of the commission from each transaction, how much sales volume has that salesperson settled this year?

An appraiser estimates the value of a commercial building to be $750,000 with a net income of $55,000. What cap rate did he use in his valuation process?

A 45-unit retail shopping complex with all units rented at $350/month has expenses of 40 percent of the gross income. The appraiser uses a cap rate of 7.5 percent in his valuation process. What value does he estimate the building to be worth?

An appraiser highly trained in appraising apartments in his area is assigned to appraise a 10-unit complex. He finds they are rented at $500 per month, and the expenses are $35,000 per year. He uses a gross rent multiplier (GRM) of 25, based on his knowledge and experience. What’s the value of the apartment complex?

A building has an economic life of 39 years. The value of the building is estimated to be $650,000. What is the annual depreciation amount?

A tenant signs a commercial lease for $1,150 per month plus an additional 4 percent of sales over a minimum of $100,000. If the company has annual sales of $230,000, what is the monthly rent paid by the tenant.

A tenant signs a lease for $1,150 per month or 4 percent of sales, whichever is greater. If the company has annual sales of $230,000, what’s the monthly rent paid by the tenant.

A sales agent is paid a 4 percent commission on the total lease he brings to the landlord. If the tenant is leasing an industrial space that’s 125 feet × 75 feet for 5 years at a rental rate of $3.50 per square foot, what’s the agent’s commission?

A developer must maintain a minimum of 1⁄2-acre lots in his new development that’s 53 acres. He also must dedicate at least 20 percent of the development to greenspace, such as parks, gardens, walking trails, etc. What’s the maximum number of lots he can develop for building houses?

At the closing, a buyer is debited $150 for a prepaid bill. The closing is on March 31. How much is the bill the seller pays?