Washington Real Estate Math Practice: REET, Commission, and Proration

Washington Real Estate Math Practice

The Washington real estate exam includes math questions in both the national and state sections. REET calculations are unique to Washington and will not appear in any national prep course. Here is a structured practice guide covering every math category you should expect.

REET (Real Estate Excise Tax) Calculations

Washington's REET uses a graduated rate structure (per RCW 82.45). The rates below apply to most residential sales:

• 1.1% on the portion of sale price up to $525,000
• 1.28% on the portion from $525,001 to $1,525,000
• 2.75% on the portion from $1,525,001 to $3,025,000
• 3% on amounts above $3,025,000

Example: A home sells for $600,000. Calculate the REET.

• First $525,000 x 0.011 = $5,775
• Remaining $75,000 x 0.0128 = $960
• Total REET = $6,735

REET is paid by the seller unless otherwise agreed. It is collected at closing.

Commission Calculations

Example: A home sells for $485,000. The listing agreement specifies a 5.5% commission. The listing broker co-brokes with a buyer's broker, splitting 50/50. The listing agent earns 60% of the listing side. How much does the listing agent earn?

• Total commission: $485,000 x 0.055 = $26,675
• Listing side (50%): $26,675 / 2 = $13,337.50
• Listing agent share (60%): $13,337.50 x 0.60 = $8,002.50

Loan-to-Value and Down Payment

Example: A buyer purchases a home for $520,000 with a conventional loan at 80% LTV. How much is the down payment?

• Loan amount: $520,000 x 0.80 = $416,000
• Down payment: $520,000 - $416,000 = $104,000

Proration Problems

Washington closings prorate property taxes based on the day of closing (buyer owns closing day in most contracts).

Example: Annual property taxes are $4,800. Closing occurs on March 1. The seller has not yet paid any taxes. How much does the seller owe at closing?

• Daily rate: $4,800 / 365 = $13.15/day
• Days Jan 1 through Feb 28 = 59 days
• Seller's share: 59 x $13.15 = $776.85 (credited to buyer)

Area Calculations

Example: A rectangular lot is 150 feet wide and 220 feet deep. What is the lot size in acres? (1 acre = 43,560 sq ft)

• Area: 150 x 220 = 33,000 sq ft
• Acres: 33,000 / 43,560 = 0.758 acres

Practice Tips

Work REET problems until you can calculate the graduated tiers without hesitation. Commission split problems with multiple levels (firm, broker, agent) are common on the national section. Proration questions require you to know whether closing day belongs to buyer or seller — read the question carefully.