Real Estate Math
A Minnesota home sells for $425,000. The seller pays a 6% commission. What is the total commission?
A$21,250
B$25,500✓ Correct
C$17,000
D$30,000
Explanation
Commission = Sale Price x Commission Rate = $425,000 x 0.06 = $25,500. This total commission is typically split between the listing brokerage and the buyer's brokerage according to the terms of the listing agreement and cooperative compensation agreement.
Related Minnesota Real Estate Math Questions
- A Minnesota property was purchased for $180,000 and sold 5 years later for $225,000. What was the percentage increase in value?
- A Minnesota investment property is purchased for $500,000. The down payment is 25%. What is the loan amount?
- A Minnesota commercial tenant occupies 4,200 sq ft of a 28,000 sq ft building. The total operating expenses are $140,000. Under a pro-rata expense lease, what is the tenant's annual expense contribution?
- A rectangular lot is 150 feet wide and 200 feet deep. How many square feet does it contain?
- If a Minnesota property appreciates 4% per year, what will a $250,000 home be worth in 3 years?
- An investor buys a rental property for $420,000 and collects $3,200/month in rent. What is the annual gross rent multiplier (GRM)?
- A property in Minnesota is assessed at $320,000. The tax rate is 1.2%. What is the annual property tax?
- A Minnesota home has a gross rent multiplier (GRM) of 95 and currently generates $1,650/month in rent. What is the estimated market value?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →