7.0 Real Estate Calculations Real Estate License Practice Quiz
26 exam-style questions covering 9% of the Real Estate License exam. Instant feedback on every answer, progress tracking, no signup required.
This domain is part of the Georgia Real Estate Salesperson License practice test. Each question is tagged by exam objective and difficulty so you can drill exactly the areas you need.
Sample Questions
A property sells for $280,000 and the listing agreement specifies a 6% commission. What is the total commission?
- A. $16,800
- B. $28,000
- C. $1,680
- D. $14,000
Commission = $280,000 × 6% = $16,800.
A rental home generates $1,500 per month in gross rent. Properties in the area sell at a gross rent multiplier (GRM) of 120. What is the estimated value?
- A. $180,000
- B. $125,000
- C. $15,000
- D. $18,000
Value = monthly rent × GRM = $1,500 × 120 = $180,000.
A property sells for $350,000 at a 6% commission split equally between the listing and selling broker. Each salesperson receives 60% of her broker's share. How much does the listing salesperson earn?
- A. $21,000
- B. $6,300
- C. $10,500
- D. $12,600
Total = $350,000 × 6% = $21,000. Listing broker share = $10,500. Salesperson 60% = $10,500 × 0.60 = $6,300.
A seller sells her home for $325,000, pays a 6% commission, and has an outstanding mortgage of $198,000. What are her approximate net proceeds?
- A. $127,000
- B. $107,500
- C. $121,000
- D. $325,000
Commission = $325,000 × 6% = $19,500. Net = $325,000 − $19,500 − $198,000 = $107,500.
Closing occurs on April 30. Annual property taxes of $3,600 are unpaid. Using 30-day months, how much does the seller owe the buyer as a tax proration?
- A. $300
- B. $1,200
- C. $2,400
- D. $3,600
Monthly tax = $3,600 ÷ 12 = $300. Seller's four months = $300 × 4 = $1,200.
A seller nets $226,800 after paying a 5.5% commission. What was the sale price?
- A. $239,274
- B. $237,500
- C. $240,000
- D. $234,900
Sale price = $226,800 ÷ 0.945 = $240,000. Check: $240,000 × 5.5% = $13,200; $240,000 − $13,200 = $226,800. ✓
A buyer makes a $4,800 down payment and pays 1.5 discount points on a $240,000 mortgage. What is the total cash required at closing for these two items?
- A. $7,200
- B. $9,600
- C. $8,400
- D. $4,800
1.5 points = 1.5% × $240,000 = $3,600. Total = $3,600 + $4,800 = $8,400.
An investor requires a 7% cap rate on a property generating $63,000 in annual net operating income. What maximum price should the investor pay?
- A. $441,000
- B. $630,000
- C. $63,000
- D. $900,000
Value = NOI ÷ cap rate = $63,000 ÷ 0.07 = $900,000.
Key Terms in This Domain
- Commission split: Sale price × commission % = total commission; split between listing and selling brokerages, then between brokerage and agent
- Net to seller: Sale price − payoff of existing loans − seller's closing costs − commission = net proceeds to seller
- Cost to buyer: Down payment + closing costs + prepaids = cash to close
- LTV calculation: LTV = Loan amount / Lesser of sale price or appraised value × 100
- Dual agency: Brokerage represents both buyer and seller; requires informed written consent from both parties; illegal in some states
- Designated agency: Different licensees within the same brokerage represent the buyer and seller separately
- Exclusive agency: Listing where the seller can sell directly to a buyer without paying commission
- Net listing: Listing where the broker keeps any sale price above a stated net to the seller; illegal or restricted in most states
- Broker Price Opinion (BPO): Broker's written opinion of value, often used by lenders for short sales or REO; less detailed than a full appraisal
- Price-fixing: Agreement between competitors on commission rates or fees; per-se illegal under antitrust law
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Other Real Estate License Domains
- 1.0 Agency Relationships and Contracts
- 2.0 Real Property Ownership and Interest
- 3.0 Finance
- 4.0 Real Property
- 5.0 Marketing Regulations
- 6.0 Property Management
- 8.0 State Laws & Rules (Georgia)
- 9.0 Real Estate Practice in Georgia
- 10.0 Finance & Closing (Georgia)
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