New Mexico Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every New Mexico 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 New Mexico Real Estate Commission does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. New Mexico 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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New Mexico Real Estate Math — Practice Questions & Answers
140 questions on Real Estate Math from the New Mexico real estate question bank. First 10 are free — sign up to unlock all 140.
Q1. A home sells for $320,000. The listing broker and selling broker each charge a 3% commission. What is the total commission paid?
Explanation
Total commission = $320,000 x 6% (3% + 3%) = $19,200. Each broker receives $9,600.
Q2. A property is assessed at $180,000 and the tax rate is $14 per $1,000 of assessed value. What is the annual property tax?
Explanation
Annual tax = ($180,000 / $1,000) x $14 = 180 x $14 = $2,520.
Q3. A buyer makes a 20% down payment on a $275,000 home. What is the loan amount?
Explanation
Down payment = $275,000 x 20% = $55,000. Loan amount = $275,000 - $55,000 = $220,000.
Q4. A rectangular lot measures 150 feet by 200 feet. What is the lot size in acres? (1 acre = 43,560 sq ft)
Explanation
Area = 150 x 200 = 30,000 sq ft. Acres = 30,000 / 43,560 = 0.6887 acres, approximately 0.69 acres.
Q5. A property sold for $425,000. The total commission rate is 6%. The listing office and selling office each receive 50% of the commission. How much does each office receive?
Explanation
Total commission = $425,000 x 6% = $25,500. Each office receives $25,500 / 2 = $12,750.
Q6. A buyer wants to net $350,000 after paying a 5% commission. What must the property sell for?
Explanation
If the seller nets $350,000 after a 5% commission, then: Sale price x (1 - 0.05) = $350,000. Sale price = $350,000 / 0.95 = $368,421.
Q7. A property has a gross monthly rent of $2,400. Using a gross rent multiplier (GRM) of 150, what is the estimated property value?
Explanation
Value = GRM x Monthly Rent = 150 x $2,400 = $360,000.
Q8. A home is assessed at 80% of its $300,000 market value. The mill rate is 25 mills. What is the annual property tax?
Explanation
Assessed value = $300,000 x 80% = $240,000. Tax = $240,000 x (25/1,000) = $240,000 x 0.025 = $6,000.
Q9. An investor purchases a rental property for $180,000 and receives annual net income of $14,400. What is the capitalization rate?
Explanation
Cap rate = NOI / Value = $14,400 / $180,000 = 0.08 = 8%.
Q10. A property's legal description states it is the SW 1/4 of the NE 1/4 of Section 12. How many acres is this parcel?
Explanation
A section contains 640 acres. 1/4 of a section = 160 acres. 1/4 of 160 = 40 acres.
Q11. A buyer pays $2,800 in discount points on a $200,000 loan. How many points did the buyer pay?
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