Massachusetts Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every Massachusetts 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 Massachusetts Board of Registration of Real Estate Brokers and Salespersons does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Massachusetts 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.
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Massachusetts Real Estate Math — Practice Questions & Answers
182 questions on Real Estate Math from the Massachusetts real estate question bank. First 10 are free — sign up to unlock all 182.
Q1. A home sells for $525,000. The buyer pays a 20% down payment and finances the rest. The lender charges 1.5 discount points on the loan. How much will the buyer pay in discount points?
Explanation
Loan amount = $525,000 × 80% = $420,000. Each point = 1% of the loan. 1.5 points = 1.5% × $420,000 = $6,300.
Q2. A property is assessed at 80% of its market value of $380,000. The tax rate is $12.50 per $1,000 of assessed value. What is the annual property tax?
Explanation
Assessed value = $380,000 × 80% = $304,000. Annual tax = ($304,000 ÷ $1,000) × $12.50 = 304 × $12.50 = $3,800.
Q3. An agent earns a 5% commission on a $640,000 sale. She receives 60% of that commission, and her broker retains the remainder. How much does the agent receive?
Explanation
Total commission = 5% × $640,000 = $32,000. Agent's share = 60% × $32,000 = $19,200.
Q4. A seller wants to net $480,000 after paying a 6% commission. What must the minimum sale price be?
Explanation
Net = Sale price × (1 − commission rate). $480,000 = Sale price × 0.94. Sale price = $480,000 ÷ 0.94 ≈ $510,638. The seller must price the property at approximately $510,638 to net $480,000 after a 6% commission.
Q5. A rectangular parcel measures 180 feet by 240 feet. How many acres is the parcel? (1 acre = 43,560 sq ft)
Explanation
Area = 180 × 240 = 43,200 sq ft. Acres = 43,200 ÷ 43,560 ≈ 0.99 acres.
Q6. A property sells for $475,000. The broker charges a 5.5% commission. What is the total commission?
Explanation
Commission = $475,000 × 5.5% = $475,000 × 0.055 = $26,125.
Q7. A building has 8 rental units, each renting for $1,800 per month. What is the annual gross rental income assuming full occupancy?
Explanation
Annual gross income = 8 units × $1,800/month × 12 months = $172,800.
Q8. A buyer obtains a $280,000 mortgage. After 10 years the balance is $230,000. How much principal has the buyer paid down?
Explanation
Principal paid = Original balance − Current balance = $280,000 − $230,000 = $50,000.
Q9. A property is listed at $550,000 and sells at 97% of the list price. The seller pays 5% commission on the actual sale price. What is the commission?
Explanation
Sale price = $550,000 × 97% = $533,500. Commission = $533,500 × 5% = $26,675.
Q10. An investment property was purchased for $400,000 three years ago and sold today for $460,000. What is the percentage appreciation?
Explanation
Appreciation = ($460,000 − $400,000) ÷ $400,000 = $60,000 ÷ $400,000 = 15%.
Q11. A broker earns a 6% commission on a $390,000 sale, split 50/50 with the cooperating broker. The listing salesperson earns 65% of the listing broker's share. How much does the listing salesperson earn?
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