Real Estate Math
A Michigan property has an asking price of $280,000 and sells at a 4% discount. A 5.5% commission is paid. What is the commission amount?
A$14,762
B$14,784✓ Correct
C$15,400
D$16,800
Explanation
Sale price = $280,000 × (1 − 0.04) = $280,000 × 0.96 = $268,800. Commission = $268,800 × 5.5% = $268,800 × 0.055 = $14,784.
Related Michigan Real Estate Math Questions
- A buyer puts 10% down on a $275,000 home. The lender charges a 1% origination fee. How much is the origination fee?
- A Michigan property's replacement cost is $280,000. The land is worth $45,000. The building has depreciated 30%. What is the property value using the cost approach?
- A Michigan real estate agent's gross commission income for the year was $96,000. If the broker takes 40%, how much does the agent net?
- A Michigan property has a potential gross income of $80,000, vacancy of 10%, and operating expenses of $28,000. What is the NOI?
- A Michigan seller paid $185,000 for a home 3 years ago and is now selling it for $235,000. What is the dollar appreciation?
- A Michigan buyer takes out a $180,000 mortgage. Points paid at closing are 2 points. How much does the buyer pay in points?
- A Michigan investor pays $500,000 for a commercial building and expects an 8% return on investment. What annual NOI is required?
- A Michigan property sells for $320,000. The total commission is 6%. The listing broker and buyer's broker split it equally. How much does each broker receive?
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →