Virginia Real Estate Math Practice

# Virginia Real Estate Math Practice

Virginia's 150-minute time limit means you must solve math problems quickly and accurately. Here are the essential formulas and worked practice problems for the Virginia PSI exam.

Core Formulas

Commission Commission = Sale Price x Rate

Virginia Grantor's Tax Grantor's Tax = (Sale Price / 100) x 0.25 (Paid by the seller at closing)

Proration Daily Rate = Annual Amount / 365 Party's share = Daily Rate x Days Responsible

Loan-to-Value LTV = Loan Amount / Purchase Price x 100

Capitalization Rate Cap Rate = Net Operating Income / Value

Points Each point = 1% of loan amount

Practice Problems

Problem 1 — Virginia Grantor's Tax: A Virginia home sells for $520,000. What is the grantor's tax paid by the seller?

Grantor's tax = (520,000 / 100) x 0.25 = 5,200 x 0.25 = $1,300

Problem 2 — Commission Split: A Northern Virginia home sells for $875,000 with a 5% total commission. The listing and selling brokerages split the commission 50/50. The listing agent receives 60% of her brokerage's share. What does the listing agent earn?

Total commission = 875,000 x 0.05 = $43,750 Each brokerage = 43,750 / 2 = $21,875 Listing agent = 21,875 x 0.60 = $13,125

Problem 3 — Proration (Seller Owes): Annual taxes of $5,475 have not been paid. Closing is June 30. Seller is responsible through the day of closing. Using 365 days, how much does the seller owe at closing?

Daily rate = 5,475 / 365 = $15.00/day Jan 1 through June 30 = 181 days Seller owes = 181 x $15 = $2,715

Problem 4 — LTV and Down Payment: A buyer purchases a Richmond home for $385,000 with a 5% down payment. What is the loan amount and LTV?

Down payment = 385,000 x 0.05 = $19,250 Loan = 385,000 - 19,250 = $365,750 LTV = 365,750 / 385,000 = 95%

Problem 5 — Investment Cap Rate: A Virginia Beach rental property has gross annual income of $72,000 and operating expenses of $28,000. An investor wants an 8% cap rate. What is the maximum value?

NOI = 72,000 - 28,000 = $44,000 Max value = 44,000 / 0.08 = $550,000

Problem 6 — Points: A buyer takes a $400,000 mortgage and pays 1.5 discount points. What is the cost?

1 point = 1% of $400,000 = $4,000 1.5 points = $6,000

Time Management for Virginia Math

With only 75 seconds per question on average, do not overcalculate. Write the key formula, plug in numbers, and calculate. If a math problem takes more than 90 seconds, flag it and return later. Do not let one calculation derail your timing.