Real Estate Math
A Connecticut broker's firm sold properties totaling $12,500,000 last year and earned a 5% average commission. Total operating expenses were $200,000. What was the firm's net income?
A$425,000✓ Correct
B$525,000
C$600,000
D$625,000
Explanation
Total commission = $12,500,000 × 0.05 = $625,000.
Related Connecticut Real Estate Math Questions
- A Connecticut buyer has $85,000 for a down payment. The maximum home they can afford with a 20% down requirement is:
- A rectangular lot in Connecticut measures 150 feet by 200 feet. What is the lot's area in acres? (1 acre = 43,560 sq ft)
- A Connecticut property is listed at $425,000. The seller agrees to pay a 5.5% commission. What is the total commission paid at closing?
- A property sells for $720,000. The state conveyance tax is 0.75% on the first $800,000. What is the conveyance tax?
- A Connecticut commercial property has gross annual rents of $325,000. Operating expenses are 38% of gross rents. The cap rate is 8%. What is the value?
- An investor buys a property for $750,000 and sells it 2 years later for $832,500. What is the total return on investment?
- A Connecticut seller wants to net $350,000 after paying a 6% commission and $4,500 in closing costs. What sales price is needed?
- A Connecticut commercial property has annual gross income of $420,000, a 5% vacancy allowance, and annual operating expenses of $155,000. What is the NOI?
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →