A house sold for $275,000. The seller paid a 5.5% commission. What was the total commission?
Why $15,125 Is Correct
Answer B: $15,125
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Alabama Questions
- A property in Alabama sells for $240,000. The total commission is 6%. How much does the listing broker receive if the commission is split equally with the buyer's broker?Real Estate Math
- An Alabama salesperson earns $9,600 on a transaction. If this represents 60% of the broker's commission, what was the total broker commission?Real Estate Math
- In Alabama, a homeowner who has not paid property taxes for an extended period may have their property sold at a:Property Ownership
- An agent earns a 3% commission on both sides of a transaction. The home sold for $425,000. How much did the agent earn in total?Real Estate Math
- An Alabama agent earns a 3% commission on a $180,000 sale. How much is the commission?Real Estate Math
Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →