An Alaska broker earns a commission of $31,200 on a sale. The commission rate was 6%. What was the sale price?
Why $520,000 Is Correct
Answer B: $520,000
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 Alaska Questions
- A salesperson earned $9,600 in commission on a sale. The commission rate was 6% and the salesperson received 40% of the total commission. What was the sale price of the property?Real Estate Math
- A buyer in Alaska paid $345,000 for a home and wants to net $400,000 after a 5% commission when they eventually sell. What minimum sale price must they achieve?Real Estate Math
- An Alaska salesperson closes a transaction and earns a 3% commission on a $420,000 sale. The broker receives 40% and the salesperson receives 60% of the total commission. How much does the salesperson earn?Real Estate Math
- A commercial property in Alaska is offered for sale at an 8.5% cap rate. The NOI is $68,000. What is the asking price?Real Estate Math
- A buyer's agent in Alaska negotiates a lower price for the buyer. The agent's commission is based on the sale price. If a lower price means less commission, this creates a potential:Agency
- A listing expires without a sale. Three weeks later, the seller accepts an offer from a buyer who was shown the property by the original agent during the listing period. Under most Alaska listing agreements, the seller may owe a commission if:Agency
- An Alaska appraiser adjusts a comparable sale downward by $10,000 because the comparable has a garage and the subject does not. This adjustment suggests the market values a garage at approximately:Property Valuation
- In Alaska, the 'buyer's agent's commission' in a cooperative sale is typically offered by:Escrow & Title
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 Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →