Maryland Practice TestReal Estate Math

Maryland Real Estate Math
Practice Questions & Answers (2026)

Real estate math questions appear on every Maryland 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 Maryland Real Estate Commission does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Maryland 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

Maryland Real Estate Math — Practice Questions & Answers

124 questions on Real Estate Math from the Maryland real estate question bank. First 10 are free — sign up to unlock all 124.

Q1. A Maryland home is appraised at $480,000. The buyer makes a 15% down payment. What is the loan amount?

A.$72,000
B.$380,000
C.$388,000
D.$408,000

Explanation

Down payment = $480,000 × 0.15 = $72,000. Loan amount = $480,000 − $72,000 = $408,000.

Q2. A Maryland property has an assessed value of $320,000 and a tax rate of $1.10 per $100 of assessed value. What are the annual property taxes?

A.$2,560
B.$3,200
C.$3,520
D.$4,400

Explanation

Tax rate per dollar = $1.10 ÷ 100 = $0.011. Annual taxes = $320,000 × $0.011 = $3,520.

Q3. A broker earns a 5.5% commission on a Maryland property that sold for $525,000. The listing agent receives 45% of the broker's total commission. How much does the listing agent earn?

A.$12,983.75
B.$14,437.50
C.$25,875.00
D.$28,875.00

Explanation

Total commission = $525,000 × 0.055 = $28,875. Listing agent's share = $28,875 × 0.45 = $12,993.75. Closest answer: $12,983.75 (rounding); calculated: $28,875 × 0.45 = $12,993.75.

Q4. A seller wants to net $275,000 after paying a 6% commission. What must the property sell for?

A.$291,500
B.$292,553
C.$293,617
D.$294,750

Explanation

Let SP = sales price. Net = SP − (SP × 0.06) = SP × 0.94 = $275,000. SP = $275,000 ÷ 0.94 ≈ $292,553.

Q5. A Maryland seller lists their home at $525,000 and agrees to pay a 5% commission. If the listing broker and buyer's broker split the commission equally, how much does each broker receive?

A.$13,125
B.$26,250
C.$52,500
D.$131,250

Explanation

Total commission = $525,000 × 5% = $26,250. Each broker's share = $26,250 ÷ 2 = $13,125.

Q6. A Maryland home sold for $410,000. The seller's net after paying a 5.5% commission and $3,200 in other closing costs was:

A.$361,750
B.$384,250
C.$384,350
D.$406,800

Explanation

Commission = $410,000 × 5.5% = $22,550. Net = $410,000 – $22,550 – $3,200 = $384,250.

Q7. A Maryland property's annual property tax is $6,000 and the annual rate is 1.5%. What is the assessed value?

A.$300,000
B.$400,000
C.$450,000
D.$600,000

Explanation

Assessed Value = Tax ÷ Rate = $6,000 ÷ 0.015 = $400,000.

Q8. A Maryland buyer makes a 10% down payment on a $380,000 home. The loan amount is:

A.$38,000
B.$342,000
C.$345,000
D.$380,000

Explanation

Down payment = $380,000 × 10% = $38,000. Loan = $380,000 – $38,000 = $342,000.

Q9. A Maryland investment property is purchased for $500,000. The investor expects a 5% annual return. What is the required annual income?

A.$5,000
B.$25,000
C.$50,000
D.$100,000

Explanation

Required income = $500,000 × 5% = $25,000 per year.

Q10. A Maryland property was purchased for $250,000 five years ago and now sells for $320,000. The percentage increase in value is:

A.22%
B.28%
C.32%
D.35%

Explanation

Increase = $70,000 ÷ $250,000 = 0.28 = 28%.

Q11. A Maryland commercial building has an annual NOI of $85,000 and sells for $1,062,500. What is the capitalization rate?

A.6%
B.7%
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