Real Estate Math
A Nebraska property owner earned a net profit of $52,000 on the sale of a $325,000 property. The property was purchased for $260,000 with $6,000 in improvements and sold with $7,000 in closing costs. What was the commission rate?
A6%
B5.5%
C5%✓ Correct
D4.5%
Explanation
Basis = $260,000 + $6,000 = $266,000. Net = $325,000 − Closing costs − Commission = $52,000 + $266,000 = $318,000 (before profit).
Related Nebraska Real Estate Math Questions
- If a property sells for $340,000 and the buyer's costs are 3% of the purchase price for closing, what are the total closing costs?
- A rectangular Nebraska agricultural parcel measures ¼ mile by ½ mile. How many acres is this?
- A property's potential gross income is $60,000 per year. The vacancy rate is 5% and operating expenses are $20,000. What is the net operating income?
- An Omaha commercial lease is 4,500 sq ft at $22/sq ft/year on a gross basis. The landlord pays $8,000/year in property taxes, $3,500 in insurance, and $9,500 in maintenance. What is the annual NOI?
- A Nebraska home sells for $445,000. The seller's existing mortgage payoff is $289,000, the commission is 5.5%, the closing costs paid by the seller are $6,200, and there are property tax prorations of $1,850 owed by the seller. How much does the seller net?
- A Nebraska buyer closes on November 1. Annual taxes of $6,000 are paid in arrears. The seller owned the property from January 1 through October 31 (304 days using a 365-day year). How much does the seller owe at closing?
- A Nebraska home's original list price was $295,000. After 60 days it was reduced 3.5%. What is the new list price?
- A Nebraska investment property sold for $625,000. The investor's adjusted basis was $410,000. Long-term capital gains tax rate is 20%. The capital gains tax owed is:
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →