Real Estate Math
A Minnesota seller nets $243,000 after paying a 6% commission. What was the sale price?
A$255,000
B$258,511✓ Correct
C$260,000
D$262,000
Explanation
Net proceeds = Sale Price x (1 - 0.06). $243,000 = Sale Price x 0.94. Sale Price = $243,000 / 0.94 = $258,510.64, approximately $258,511. This reverse commission calculation is common on real estate exams: divide the net by the complement of the commission rate.
Related Minnesota Real Estate Math Questions
- A Minnesota homeowner refinances their $200,000 mortgage. Closing costs are $4,500. The new mortgage saves $175/month in interest. How many months until the break-even point?
- A Minnesota buyer puts 10% down on a $340,000 home. How much is the down payment?
- Using straight-line depreciation, a warehouse building with an estimated economic life of 40 years is worth $800,000 new. If it is currently 10 years old, what is the depreciated value of the building (not including land)?
- A Minnesota buyer purchases a property for $245,000 with 5% down. What is the loan-to-value (LTV) ratio?
- A Minnesota buyer pays $3,000 in escrow for property taxes on a home bought July 1. The annual tax is $4,800. If the seller owes taxes from January 1 through June 30 (181 days), what is the seller's tax proration?
- A Minnesota home listed at $399,000 sells at a 2% discount. What is the sale price?
- A Minnesota investor buys a 4-unit building for $480,000 and receives $1,200/month per unit. What is the GRM?
- A Minnesota property sold for $425,000. The seller paid a total of $27,500 in closing costs and commission. What percentage of the sale price did the seller pay in total costs?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →