Michigan Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every Michigan 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 Michigan Department of Licensing and Regulatory Affairs (LARA) does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Michigan 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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Michigan Real Estate Math — Practice Questions & Answers
134 questions on Real Estate Math from the Michigan real estate question bank. First 10 are free — sign up to unlock all 134.
Q1. A Michigan home sold for $310,000. The seller agreed to pay a 5.5% commission. How much was the total commission?
Explanation
Commission = $310,000 × 5.5% = $310,000 × 0.055 = $17,050.
Q2. A property is assessed at 50% of its market value of $260,000. The millage rate is 42 mills. What is the annual property tax?
Explanation
Assessed value = $260,000 × 50% = $130,000. Annual tax = $130,000 × (42 ÷ 1,000) = $130,000 × 0.042 = $5,460.
Q3. A rectangular lot measures 150 feet by 200 feet. How many acres is this lot? (1 acre = 43,560 sq ft)
Explanation
Area = 150 ft × 200 ft = 30,000 sq ft. Acres = 30,000 ÷ 43,560 = 0.689 acres, approximately 0.69 acres.
Q4. A buyer puts 10% down on a $275,000 home. The lender charges a 1% origination fee. How much is the origination fee?
Explanation
Down payment = $275,000 × 10% = $27,500. Loan amount = $275,000 − $27,500 = $247,500. Origination fee = 1% × $247,500 = $2,475.
Q5. A Michigan commercial building has a NOI of $72,000 per year and a cap rate of 8%. What is the estimated value?
Explanation
Value = NOI ÷ Cap Rate = $72,000 ÷ 0.08 = $900,000.
Q6. A Michigan property sells for $320,000. The total commission is 6%. The listing broker and buyer's broker split it equally. How much does each broker receive?
Explanation
Total commission = $320,000 × 6% = $19,200. Each broker's share = $19,200 ÷ 2 = $9,600.
Q7. A Michigan home sells for $415,000. The seller agreed to pay a 5.5% commission. What is the total commission?
Explanation
Total commission = $415,000 × 5.5% = $415,000 × 0.055 = $22,825.
Q8. A Michigan listing agent earns 60% of a 6% commission on a $250,000 sale. How much does the listing agent earn?
Explanation
Total commission = $250,000 × 6% = $15,000. Listing agent's share = $15,000 × 60% = $9,000.
Q9. A Michigan home appraised at $400,000 is assessed at 50% of appraised value. The millage rate is 40 mills. What is the annual property tax?
Explanation
Assessed value = $400,000 × 50% = $200,000. Annual tax = $200,000 × (40 ÷ 1,000) = $200,000 × 0.040 = $8,000.
Q10. A Michigan property purchased for $180,000 sells for $225,000. What is the percentage increase in value?
Explanation
Percentage increase = (Sale Price − Purchase Price) ÷ Purchase Price = ($225,000 − $180,000) ÷ $180,000 = $45,000 ÷ $180,000 = 25%.
Q11. A Michigan property has a gross rent multiplier (GRM) of 125. Annual gross rents are $24,000. What is the estimated value?
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