An agent receives 50% share of a 3% gross commission. The property sold for $350,000. How much commission will the agent receive?
Correct Answer
A) $5,250.00
Total commission = $350,000 × 0.03 = $10,500. Agent's share = $10,500 × 0.50 = $5,250
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Real Estate Math Question
Background Knowledge for Real Estate Math
Real World Application in Real Estate Math
Common Mistakes to Avoid on Real Estate Math Questions
Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Daily rate calculation involves determining the cost or income per day by dividing the total amount by the number of days in the period (usually a year or a month). This is a fundamental step in proration.
The capitalization rate (cap rate) is the ratio of a property's net operating income to its sale price, expressed as a percentage. It is used to estimate value and compare profitability of investment properties. Cap Rate = NOI / Value.
The capitalization rate (Cap Rate) is the rate of return on a real estate investment based on its expected income.
More Real Estate Math Questions
A Texas agent earns a 6% commission on a $350,000 sale. The listing broker takes 60% of the commission. How much does the listing broker receive?
$285,000 sale, 6%:
Using the 28/36 rule, if Marty's gross income is $5,500 monthly, he needs to spend less than ___ in housing costs to qualify for most loans.
$180,000 appreciates 4%, 2 years:
A triangular lot has a base of 200 feet and a height of 150 feet. What is the area of the lot?
- → Gross income $60,000, expenses $22,000. NOI:
- → A house sold for $275,000 which was 9% less than the original cost. What was the original cost?
- → Annual property taxes are $2,400, paid in arrears. Closing is August 1 (using a 360-day year, 30-day months). The closing day belongs to the buyer. How much does the seller owe the buyer at closing?
- → A seller closes on a property for $500,000. The commission is 6%, other seller closing costs are $4,500, and the existing mortgage payoff is $150,000. What are the seller's net proceeds before any tax effects?
- → A seller wants to net $250,000 after paying a 6% commission and has no other closing costs to consider. What sale price is needed?
- → A property sells for $220,000 and generates monthly rent of $1,600. What is the Gross Rent Multiplier (GRM)?
- → Annual property taxes are $4,380 and have not been paid for the current year. The property closes on March 15, and the seller owns the day of closing. Using a 365-day year, how much does the seller owe at closing?
- → An investor is valuing a small rental property listed at $600,000 that produces gross monthly rent of $2,900. What is the gross rent multiplier (GRM) on a monthly rent basis?
- → An investor is valuing a small rental property listed at $720,000 that produces gross monthly rent of $3,400. What is the gross rent multiplier (GRM) on a monthly rent basis?
- → 175 ft × 200 ft lot:
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
How to Study Real Estate Valuation Questions Without Letting Principle Names Replace Actual Reasoning
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for study real estate...
How to Review Real Estate Math Questions Without Letting Formula Memory Crowd Out Reading Accuracy
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for review real estate math...
Essential Real Estate Math Formulas You Need to Know
Master the key math formulas for your real estate exam. Covers commission, prorations, area calculations, and more with step-by-step examples.