New York Practice TestReal Estate Math

New York Real Estate Math
Practice Questions & Answers (2026)

Real estate math questions appear on every New York 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 York Department of State (DOS) does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. New York 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

New York Real Estate Math — Practice Questions & Answers

144 questions on Real Estate Math from the New York real estate question bank. First 10 are free — sign up to unlock all 144.

Q1. A seller nets $285,000 after paying a 5% commission. What was the sale price?

A.$295,000
B.$300,000
C.$305,000
D.$310,000

Explanation

If the seller nets $285,000 after a 5% commission, the net equals 95% of the sale price. Sale price = $285,000 / 0.95 = $300,000.

Q2. A property has a gross rent of $36,000 per year. The gross rent multiplier (GRM) for the area is 12. What is the estimated value?

A.$380,000
B.$400,000
C.$420,000
D.$432,000

Explanation

Value = Gross Annual Rent x GRM = $36,000 x 12 = $432,000.

Q3. A home's assessed value is $400,000, which represents 80% of market value. What is the estimated market value?

A.$460,000
B.$480,000
C.$500,000
D.$520,000

Explanation

Market value = Assessed value / Assessment ratio = $400,000 / 0.80 = $500,000.

Q4. A buyer purchases a property for $450,000 with a 10% down payment. The lender charges 2 discount points. How much are the discount points in dollars?

A.$7,200
B.$8,100
C.$9,000
D.$9,900

Explanation

Loan amount = $450,000 x 90% = $405,000. Discount points = $405,000 x 2% = $8,100.

Q5. An investor purchases a 6-unit apartment building. Each unit rents for $1,500/month. The vacancy and credit loss rate is 5%. What is the effective gross income per year?

A.$97,200
B.$102,600
C.$108,000
D.$110,000

Explanation

Potential gross income = 6 units x $1,500 x 12 = $108,000. Vacancy/credit loss = $108,000 x 5% = $5,400. Effective gross income = $108,000 - $5,400 = $102,600.

Q6. A property's annual taxes are $6,000. If taxes are prorated at closing and the seller has paid the full year, and closing is on September 1, how much does the buyer owe the seller?

A.$1,500
B.$2,000
C.$2,500
D.$3,000

Explanation

The buyer owes the seller for the remaining 4 months of the year (September 1 through December 31). $6,000 / 12 = $500/month x 4 = $2,000. Wait — Sept 1 means the buyer gets Sept through Dec = 4 months. $500 x 4 = $2,000. Answer is $2,000.

Q7. A broker earns a 5% commission on a $550,000 sale and splits 50/50 with the cooperating broker. How much does the listing broker receive?

A.$13,750
B.$27,500
C.$55,000
D.$41,250

Explanation

Total commission = $550,000 x 5% = $27,500. Split 50/50: listing broker receives $27,500 / 2 = $13,750. The listing broker receives $13,750.

Q8. A property is assessed at $320,000. The tax rate is $18 per $1,000 of assessed value. What is the annual property tax?

A.$4,800
B.$5,760
C.$6,480
D.$7,200

Explanation

Annual tax = ($320,000 / $1,000) x $18 = 320 x $18 = $5,760.

Q9. A buyer wants to purchase a home priced at $520,000. The lender requires a 20% down payment. What loan amount will the buyer need?

A.$396,000
B.$404,000
C.$416,000
D.$432,000

Explanation

Down payment = $520,000 x 20% = $104,000. Loan amount = $520,000 - $104,000 = $416,000.

Q10. If a property's value increases from $400,000 to $460,000, what is the percentage increase in value?

A.12%
B.13%
C.15%
D.17%

Explanation

Percentage increase = ($460,000 - $400,000) / $400,000 = $60,000 / $400,000 = 0.15 = 15%.

Q11. A rectangular lot is 100 feet wide and 250 feet deep. How many acres is the lot? (1 acre = 43,560 sq ft)

A.0.45 acres
B.0.55 acres
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