Vermont Practice TestReal Estate Math

Vermont Real Estate Math
Practice Questions & Answers (2026)

Real estate math questions appear on every Vermont real estate exam and test a focused set of calculations: commission splits, prorations (property tax, rent, interest), loan-to-value ratios, appreciation and depreciation, and area calculations. The Vermont Real Estate Commission does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Vermont candidates consistently lose points on proration questions because they apply the wrong day-count convention (360-day vs. 365-day year) or miscalculate the seller's vs. buyer's share. Work through every problem in this section until you can solve each type without hesitation.

Practice Questions

Vermont Real Estate Math — Practice Questions & Answers

140 questions on Real Estate Math from the Vermont real estate question bank. First 10 are free — sign up to unlock all 140.

Q1. A Vermont home sells for $375,000. The Vermont Property Transfer Tax for a non-primary-residence buyer is 1.45% of the purchase price. What is the tax?

A.$3,750
B.$5,438
C.$5,625
D.$4,313

Explanation

Property Transfer Tax = $375,000 × 0.0145 = $5,437.50, which rounds to $5,438.

Q2. A Vermont investment property has a gross monthly rent of $2,800. The gross rent multiplier (GRM) for comparable properties is 145. What is the estimated market value?

A.$376,400
B.$406,000
C.$336,000
D.$462,000

Explanation

Value = Monthly Rent × GRM = $2,800 × 145 = $406,000.

Q3. A seller lists a Vermont property for $420,000 and agrees to pay a 5% commission. The property sells for $408,000. How much is the total commission?

A.$21,000
B.$20,400
C.$19,800
D.$18,900

Explanation

Commission is calculated on the actual sale price: $408,000 × 0.05 = $20,400.

Q4. A buyer in Vermont takes out a $310,000 mortgage at 6.5% annual interest. What is the interest portion of the very first monthly payment?

A.$1,679
B.$1,758
C.$2,015
D.$1,625

Explanation

Monthly interest rate = 6.5% ÷ 12 = 0.5417%. First month's interest = $310,000 × 0.005417 = $1,679.17 ≈ $1,679.

Q5. A Vermont property is assessed at $280,000 with a tax rate of 1.8% of assessed value. What is the annual property tax?

A.$2,800
B.$5,040
C.$5,600
D.$4,480

Explanation

Annual property tax = Assessed value × Tax rate = $280,000 × 0.018 = $5,040.

Q6. A Vermont seller nets $315,000 after paying a 5% commission on the sale. What was the sale price?

A.$330,750
B.$331,579
C.$315,000
D.$325,000

Explanation

If the seller nets 95% of the sale price (after 5% commission), then: Sale price × 0.95 = $315,000. Sale price = $315,000 ÷ 0.95 = $331,578.95 ≈ $331,579.

Q7. A Vermont lot measures 200 feet by 300 feet. What is the lot size in acres? (1 acre = 43,560 sq ft)

A.0.92 acres
B.1.38 acres
C.1.72 acres
D.2.06 acres

Explanation

Area = 200 × 300 = 60,000 sq ft. Acres = 60,000 ÷ 43,560 = 1.377 ≈ 1.38 acres.

Q8. A buyer takes out a $250,000 mortgage with monthly payments of $1,600. The first month's interest is $1,250. How much principal is paid in the first month?

A.$250
B.$350
C.$1,250
D.$1,600

Explanation

Monthly payment = $1,600. Interest portion = $1,250. Principal portion = $1,600 – $1,250 = $350.

Q9. A Vermont commercial property has a list price of $1,200,000. An investor's analysis requires a 8% cap rate. If the property's NOI is $88,000, what should the investor offer?

A.$1,100,000
B.$1,200,000
C.$1,000,000
D.$1,050,000

Explanation

Investor's value = NOI ÷ Cap rate = $88,000 ÷ 0.08 = $1,100,000. The investor should offer no more than $1,100,000 to achieve the required 8% cap rate.

Q10. Vermont's Land Gains Tax rate for land sold within 1 year of purchase is 80% of the gain. A buyer purchased land for $100,000 and sold it 8 months later for $150,000. What is the Land Gains Tax?

A.$40,000
B.$50,000
C.$80,000
D.$120,000

Explanation

Gain = $150,000 – $100,000 = $50,000. Land Gains Tax = $50,000 × 80% = $40,000.

Q11. A property's market value is $450,000 and the assessment ratio is 85%. The mill rate is 18 mills. What is the annual property tax?

A.$6,885
B.$7,650
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