Pennsylvania Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every Pennsylvania 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 Pennsylvania State Real Estate Commission does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Pennsylvania 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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Pennsylvania Real Estate Math — Practice Questions & Answers
141 questions on Real Estate Math from the Pennsylvania real estate question bank. First 10 are free — sign up to unlock all 141.
Q1. A Pennsylvania home sells for $425,000. Realty transfer tax is 2% of the sale price, split equally between buyer and seller. How much does the seller pay?
Explanation
Total transfer tax: $425,000 × 0.02 = $8,500. Seller's share (50%): $8,500 ÷ 2 = $4,250.
Q2. A property has a list price of $350,000. After 60 days it sells for 97% of the list price. The listing agent earns 3% and the buyer's agent earns 2.5% of the sale price. How much does the buyer's agent earn?
Explanation
Sale price: $350,000 × 0.97 = $339,500. Buyer's agent commission: $339,500 × 0.025 = $8,487.50.
Q3. A buyer makes a 15% down payment on a $280,000 home. What is the loan amount and what is the LTV ratio?
Explanation
Down payment: $280,000 × 0.15 = $42,000. Loan amount: $280,000 − $42,000 = $238,000. LTV: $238,000 ÷ $280,000 = 0.85 = 85%.
Q4. An investment property was purchased for $200,000 five years ago and is now sold for $265,000. What is the percentage gain on the original purchase price?
Explanation
Gain: $265,000 − $200,000 = $65,000. Percentage gain: $65,000 ÷ $200,000 = 0.325 = 32.5%.
Q5. A seller lists their home for $425,000 and agrees to pay a 5% commission. What is the total commission?
Explanation
$425,000 × 0.05 = $21,250 total commission.
Q6. A property sells for $310,000. Pennsylvania state transfer tax is 1% and local transfer tax is 1%, split equally between buyer and seller. How much does the buyer pay in transfer tax?
Explanation
Total transfer tax = 2% × $310,000 = $6,200. Split equally: buyer pays $3,100 and seller pays $3,100. Wait — each pays 1% = $3,100. But per standard Pennsylvania custom, buyer pays half of total: $6,200 ÷ 2 = $3,100. Actually, let me recalculate: 1% state + 1% local = 2% total = $6,200. Buyer's share = $3,100. The answer $1,550 represents only the buyer's share of the state portion (0.5% × $310,000 = $1,550). Since buyer and seller each pay 1%: buyer pays $3,100.
Q7. A buyer takes out a $240,000 mortgage at 6% annual interest. What is the first month's interest payment?
Explanation
Monthly interest = $240,000 × (6% ÷ 12) = $240,000 × 0.005 = $1,200.
Q8. A property has a net operating income of $45,000 per year. Using a capitalization rate of 7.5%, what is the estimated value?
Explanation
Value = NOI ÷ Cap Rate = $45,000 ÷ 0.075 = $600,000.
Q9. A seller nets $280,000 after paying a 6% commission. What was the original sales price?
Explanation
If seller keeps 94% of the price: $280,000 ÷ 0.94 = $297,872 (rounded). Sales price × 0.94 = $280,000 → price = $297,872.
Q10. An investor buys a rental property for $180,000 and rents it for $1,600/month. What is the annual gross rent multiplier?
Explanation
Annual GRM = Purchase Price ÷ Annual Gross Rent = $180,000 ÷ ($1,600 × 12) = $180,000 ÷ $19,200 = 9.375.
Q11. A rectangular lot is 150 feet wide and 200 feet deep. What is the lot size in acres? (1 acre = 43,560 sq ft)
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