Georgia Practice TestReal Estate Math

Georgia Real Estate Math
Practice Questions & Answers (2026)

Real estate math questions appear on every Georgia real estate exam and test a focused set of calculations: commission splits, prorations (property tax, rent, interest), loan-to-value ratios, appreciation and depreciation, and area calculations. The Georgia Real Estate Commission (GREC) does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Georgia candidates consistently lose points on proration questions because they apply the wrong day-count convention (360-day vs. 365-day year) or miscalculate the seller's vs. buyer's share. Work through every problem in this section until you can solve each type without hesitation.

Practice Questions

Georgia Real Estate Math — Practice Questions & Answers

181 questions on Real Estate Math from the Georgia real estate question bank. First 10 are free — sign up to unlock all 181.

Q1. A Georgia borrower takes out a $320,000 security deed. The intangible recording tax is $1.50 per $500 of the loan amount. What is the total intangible tax?

A.$480
B.$640
C.$960
D.$1,440

Explanation

Number of $500 increments = $320,000 ÷ $500 = 640. Intangible tax = 640 × $1.50 = $960.

Q2. A Georgia property is listed at $389,000. After 60 days with no offers, the seller reduces the price by 4%. What is the new listing price?

A.$349,000
B.$373,440
C.$374,940
D.$385,000

Explanation

Price reduction = $389,000 × 4% = $15,560. New price = $389,000 − $15,560 = $373,440.

Q3. A Georgia property sells for $425,000. The total commission is 6%, split equally between the listing and buyer's broker. Within the listing office, the listing agent receives 55% of their office's commission. What does the listing agent earn?

A.$7,012.50
B.$8,662.50
C.$12,750
D.$14,025

Explanation

Total commission = $425,000 × 6% = $25,500. Listing office share = $25,500 ÷ 2 = $12,750. Listing agent share = $12,750 × 55% = $7,012.50. Wait — $12,750 × 55% = $7,012.50. The closest answer is $8,662.50 which corresponds to $12,750 × 67.9%. Let me recalculate: $12,750 × 0.55 = $7,012.50. The correct answer is $7,012.50.

Q4. An investor purchases a Georgia rental property for $180,000. The annual net operating income (NOI) is $14,400. What is the capitalization rate?

A.6%
B.7%
C.8%
D.9%

Explanation

Cap Rate = NOI ÷ Purchase Price = $14,400 ÷ $180,000 = 0.08 = 8%.

Q5. A Georgia home sells for $425,000. The listing broker charges 6% commission, split equally with the cooperating broker. How much does each broker receive?

A.$12,750
B.$25,500
C.$51,000
D.$8,500

Explanation

Total commission = $425,000 × 6% = $25,500. Split equally: $25,500 ÷ 2 = $12,750 per broker.

Q6. A property's assessed value in Georgia is $120,000 (40% of fair market value). What is the fair market value?

A.$240,000
B.$300,000
C.$340,000
D.$400,000

Explanation

If assessed value = 40% of FMV, then FMV = Assessed Value ÷ 0.40 = $120,000 ÷ 0.40 = $300,000.

Q7. A buyer takes a 30-year, $200,000 mortgage at 6% annual interest. What is the first month's interest payment?

A.$1,000
B.$1,200
C.$833
D.$600

Explanation

Monthly interest = $200,000 × (6% ÷ 12) = $200,000 × 0.005 = $1,000.

Q8. A rectangular lot is 150 feet wide and 200 feet deep. How many acres is this lot? (1 acre = 43,560 sq ft)

A.0.55 acres
B.0.69 acres
C.0.75 acres
D.0.82 acres

Explanation

Area = 150 × 200 = 30,000 sq ft. Acres = 30,000 ÷ 43,560 ≈ 0.69 acres.

Q9. A property has a monthly gross income of $3,500 and sells for $252,000. What is the Gross Rent Multiplier (GRM)?

A.60
B.72
C.80
D.84

Explanation

GRM = Sale Price ÷ Monthly Gross Rent = $252,000 ÷ $3,500 = 72.

Q10. A Georgia seller nets $180,000 after paying a 6% commission. What was the original selling price?

A.$191,400
B.$190,000
C.$191,489
D.$192,000

Explanation

Net = Sale Price × (1 − 0.06) → $180,000 = SP × 0.94 → SP = $180,000 ÷ 0.94 ≈ $191,489.

Q11. An investor buys a property for $250,000 and sells it two years later for $287,500. What is the percentage gain?

A.12%
B.15%
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