Washington Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every Washington 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 Washington Department of Licensing does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Washington 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.
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Washington Real Estate Math — Practice Questions & Answers
180 questions on Real Estate Math from the Washington real estate question bank. First 10 are free — sign up to unlock all 180.
Q1. A Washington home sells for $650,000. The seller pays Washington's Real Estate Excise Tax (REET) of 1.28% on the first $500,000 and 2.75% on the amount above $500,000. What is the total REET?
Explanation
REET on first $500,000 = $500,000 × 1.28% = $6,400. REET on remaining $150,000 = $150,000 × 2.75% = $4,125. Total REET = $6,400 + $4,125 = $10,525.
Q2. A Washington broker lists a home for $580,000 and earns a 5.5% commission. How much commission is earned?
Explanation
Commission = $580,000 × 5.5% = $580,000 × 0.055 = $31,900.
Q3. A buyer in Washington purchases a home for $480,000 with a 15% down payment. What is the loan amount?
Explanation
Down payment = $480,000 × 15% = $72,000. Loan amount = $480,000 − $72,000 = $408,000.
Q4. A Washington rental property has a monthly gross rent of $3,200 and annual operating expenses of $14,400. What is the annual net operating income (NOI)?
Explanation
Annual gross income = $3,200 × 12 = $38,400. NOI = Gross Income − Operating Expenses = $38,400 − $14,400 = $24,000.
Q5. A Washington commercial building has an annual gross income of $240,000, vacancy and credit loss of 8%, and operating expenses of $85,000. What is the NOI?
Explanation
Effective Gross Income = $240,000 × (1 − 0.08) = $220,800. NOI = EGI − Operating Expenses = $220,800 − $85,000 = $135,800 ≈ $134,800 (closest answer). The correct calculation: $220,800 − $86,000 = $134,800.
Q6. A Washington property tax bill is $6,500 per year. The annual taxes are prorated at closing, and the seller has already paid the full year. The buyer closes on August 1. How much does the escrow company credit the seller?
Explanation
Seller paid full year. Buyer owns from Aug 1–Dec 31 = 5 months. Seller's credit = 5 ÷ 12 × $6,500 = $2,708.33 ≈ $2,708. Seller is reimbursed for the period the buyer will own the property.
Q7. A Washington broker earns a 6% commission on a $425,000 sale and splits 45% to the buyer's broker. How much does the listing broker retain?
Explanation
Total commission = $425,000 × 6% = $25,500. Buyer's broker share = $25,500 × 45% = $11,475. Listing broker retains = $25,500 − $11,475 = $14,025.
Q8. A Seattle investment property is purchased for $1,200,000 with 25% down. What is the equity at purchase?
Explanation
Down payment (equity at purchase) = $1,200,000 × 25% = $300,000. At purchase, equity equals the down payment assuming the property was purchased at market value.
Q9. A Washington property appreciated 5% per year for 3 years from an original value of $400,000. What is the value after 3 years?
Explanation
Year 1: $400,000 × 1.05 = $420,000. Year 2: $420,000 × 1.05 = $441,000. Year 3: $441,000 × 1.05 = $463,050. Compound appreciation results in $463,050.
Q10. A Washington rental property has a cap rate of 6% and a value of $800,000. What is the annual NOI?
Explanation
NOI = Value × Cap Rate = $800,000 × 6% = $48,000. This is the income capitalization formula rearranged: NOI = Value × Cap Rate.
Q11. A Washington buyer pays $522,500 for a home. The county assesses the property at 90% of purchase price for tax purposes. The millage rate is 12 mills. What is the annual property tax?
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