Real Estate Math
A Tennessee listing agreement specifies a 6% commission. The property sells for $385,000. If the listing broker splits the commission 50/50 with the buyer's broker, how much does each broker receive?
A$11,550✓ Correct
B$23,100
C$13,475
D$9,625
Explanation
Total commission = $385,000 × 6% = $23,100. Each broker receives $23,100 ÷ 2 = $11,550. To solve this, multiply the relevant values: $385,000 at 6%.. The correct answer is $11,550.. This is a common calculation on the Tennessee real estate exam.
Related Tennessee Real Estate Math Questions
- A buyer qualifies for a maximum monthly PITI payment of $1,800. Monthly property taxes are $250, insurance is $100. What is the maximum monthly P&I payment the buyer can afford?
- A Tennessee seller receives $412,000 from a sale. They pay a 5.5% broker commission, $3,500 in closing costs, and the balance of their $280,000 mortgage. How much does the seller net?
- A property's assessed value is $180,000 and the tax rate is $2.50 per $100 of assessed value. What are the annual property taxes?
- A property in Knoxville has an effective gross income of $85,000 and a vacancy rate built in at 5%. What was the gross potential income before vacancy?
- A building has a net operating income of $48,000 per year. If the market cap rate is 8%, what is the estimated value?
- Using a 360-day banker's year, how many days is the proration period if closing occurs on March 15? (Seller pays through day of closing.)
- A home sells for $265,000. The seller pays a 5.5% commission. What is the total commission dollar amount?
- An investor purchases a rental property for $180,000 and spends $20,000 on improvements. After 5 years, it sells for $250,000. What is the profit (not accounting for depreciation or taxes)?
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →