Real Estate Math
A property sells for $620,000. The listing office earns a 3% commission and the buyer's agent's office earns 2.5%. What is the total commission paid?
A$18,600
B$15,500
C$34,100✓ Correct
D$31,000
Explanation
Total commission rate = 3% + 2.5% = 5.5%. Total commission = $620,000 × 0.055 = $34,100.
Related California Real Estate Math Questions
- A lot is 1.5 acres. How many square feet is it? (1 acre = 43,560 sq ft)
- A property's effective gross income is $108,000 per year. Operating expenses are $42,000. At a 7% cap rate, what is the estimated value?
- A buyer pays 3 discount points on a $420,000 loan. How much does the buyer pay in discount points?
- A home listed at $550,000 receives an offer at 96% of list price. How much is the offer?
- A borrower's gross monthly income is $8,500. The lender requires a housing expense ratio of no more than 28%. What is the maximum allowable monthly housing payment?
- An agent earns a flat fee of $8,000 for a sale. The brokerage takes 30% and the agent keeps 70%. How much does the agent retain?
- An apartment building has a gross annual income of $120,000, vacancy and collection loss of 5%, and operating expenses of $42,000. What is the Net Operating Income (NOI)?
- A salesperson earns 60% of the commission. The total commission on a $380,000 sale at 6% is split 50/50 between listing and selling offices. What does the salesperson earn?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →