West Virginia Real Estate Math Practice: Excise Tax, Commission, and Proration

West Virginia Real Estate Math Practice

The West Virginia real estate exam includes math questions in both the national and state sections. The county excise tax calculation is unique to West Virginia and will not appear in national prep materials. Here is a structured guide covering every math category you should prepare.

County Excise Tax Calculations

West Virginia does not have a state real estate transfer tax, but counties collect an excise tax at closing. The rate is $1.10 per $500 of the sale price (or any fraction of $500).

Formula: (Sale price / 500, rounded up to next whole number) x $1.10

Example 1: A home sells for $175,000. What is the county excise tax?

• $175,000 / $500 = 350 (exactly, no rounding needed)
• 350 x $1.10 = $385

Example 2: A property sells for $212,750. What is the county excise tax?

• $212,750 / $500 = 425.5 — round up to 426
• 426 x $1.10 = $468.60

The excise tax is typically paid by the seller at closing. Know the formula and the rounding rule.

Commission Calculations

Example: A West Virginia home sells for $189,000. The broker charges 6% commission, split 55/45 between the listing and buyer's broker. The listing agent keeps 70% of the listing broker's side. How much does the listing agent earn?

• Total commission: $189,000 x 0.06 = $11,340
• Listing broker side (55%): $11,340 x 0.55 = $6,237
• Listing agent share (70%): $6,237 x 0.70 = $4,365.90

Loan-to-Value and Qualifying

Example: A buyer qualifies for a maximum loan of 80% LTV on a purchase price of $220,000. How much is the required down payment?

• Loan: $220,000 x 0.80 = $176,000
• Down payment: $220,000 - $176,000 = $44,000

Proration Problems

Example: Annual property taxes in Kanawha County are $2,400. Closing occurs on June 1. Taxes are paid in arrears at year end. How much does the seller owe the buyer at closing?

• Days Jan 1 through May 31 = 151 days
• Daily rate: $2,400 / 365 = $6.575/day
• Seller's share: 151 x $6.575 = $992.83 (credited to buyer)

Area Calculations

Example: A rectangular parcel is 300 feet wide and 400 feet deep. What is its size in acres?

• Area: 300 x 400 = 120,000 sq ft
• Acres: 120,000 / 43,560 = 2.755 acres

Depreciation (Cost Approach)

Example: A building has a replacement cost of $180,000. It has an estimated useful life of 40 years and is 10 years old. What is the accrued depreciation?

• Annual depreciation: $180,000 / 40 = $4,500/year
• Accrued depreciation: $4,500 x 10 = $45,000
• Depreciated building value: $180,000 - $45,000 = $135,000

Practice Tips

Master the excise tax formula before your exam — it requires a rounding step that surprises candidates. For commission and proration problems, write out each step rather than doing mental math. The PSI testing system provides an on-screen calculator, so accuracy matters more than mental speed.