Real Estate License Exam Math: Commissions, Prorations & Loans

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Split four commissions between the co-op broker, the brokerage and the agent, solve the classic "what price must the house sell for?" problem and price a graduated commission.
• Measure an irregular lot in square feet and acres, price an L-shaped house per square foot and price a parcel described with the government survey system.
• Turn a market value into a taxable assessed value and a tax bill, set a town's mill rate from its budget and compare a rate quoted per USD 100.
• Prorate unpaid property tax with the actual-day and the 360-day method, split the June rent and refund the unused HOA dues, and say who is credited.
• Compute the LTV on the lower of price and appraisal, the monthly principal and interest with PMT, the cost of two discount points and how many months they take to pay off.
• Build the monthly housing payment, calculate both qualifying ratios, find the largest housing payment the limits allow and decide whether the household qualifies.
• Adjust three comparable sales to the subject house, value it with the cost approach and straight-line depreciation, and capitalise its rental income.
• Screen five small rental buildings by gross rent multiplier and cap rate, chart the cap rates, and measure the cash-on-cash return of one financed purchase.