Real Estate Math
A property sells for $650,000. The broker's total commission is 5%. The listing broker splits 55/45 with the buyer's broker. How much does the buyer's broker receive?
A$13,375
B$14,625✓ Correct
C$15,675
D$16,250
Explanation
Total commission = $650,000 x 5% = $32,500. Buyer's broker = $32,500 x 45% = $14,625. To solve this, multiply the relevant values: $650,000 at 5%.. The correct answer is $14,625.. This is a common calculation on the New York real estate exam.
Related New York Real Estate Math Questions
- A New York real estate investment generates annual rent of $48,000 and is purchased for $600,000. What is the Gross Rent Multiplier (GRM)?
- A buyer wants to purchase a home priced at $520,000. The lender requires a 20% down payment. What loan amount will the buyer need?
- A broker charges 5% commission and splits it equally with the cooperating broker. The cooperating broker then pays their salesperson 40% of the cooperating side. If the property sold for $680,000, how much does the salesperson receive?
- A buyer's agent representing a client in a $925,000 purchase negotiated a price reduction of $45,000. The final purchase price is:
- A buyer's total closing costs are estimated at 3% of the purchase price of $450,000. How much should the buyer budget for closing costs?
- A Brooklyn property's annual gross rent is $96,000 with a GRM of 12. The estimated value is:
- A NYC building sold for $3,200,000 with a cap rate of 5%. What is the NOI that supported this value?
- A New York salesperson earns 30% of the gross commission from a $490,000 sale where the brokerage charges a 5% commission. The salesperson's earnings are:
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →