Sample Questions

Try free real estate math questions

These practice questions are written in the same style and difficulty level
as the U.S. National Real Estate Exam math section. Choose the best answer,
then click “Show answer & explanation” to see how the math works.

Question 1 · Commissions

A property sells for $420,000. The listing broker earns 3% and the buyer’s
broker earns 2.5% of the sale price. What is the total commission paid?

  1. $10,500
  2. $16,800
  3. $23,100
  4. $24,500
Show answer & explanation

Correct answer: C. $23,100

Total commission rate = 3% + 2.5% = 5.5% (0.055).
Multiply: $420,000 × 0.055 = $23,100.

Question 2 · Tax proration (360-day year)

Annual property taxes are $3,600, paid in arrears using a 360-day year.
Closing is March 15 and the buyer owns the day of closing.
What is the seller’s share of the taxes, to be debited to the seller and
credited to the buyer?

  1. $700
  2. $720
  3. $740
  4. $760
Show answer & explanation

Correct answer: C. $740

Use a 360-day year: daily rate = $3,600 ÷ 360 = $10/day.
Buyer owns the day of closing, so seller is responsible from Jan 1 through
March 14.

Jan (30 days) + Feb (30 days) + first 14 days of March = 74 days.
74 days × $10/day = $740.

Question 3 · Loan-to-value (LTV)

A buyer agrees to purchase a home for $250,000. The property appraises for
$245,000. The lender will loan up to 80% of the lower of the purchase
price or appraised value. What is the maximum loan amount?

  1. $196,000
  2. $200,000
  3. $204,000
  4. $210,000
Show answer & explanation

Correct answer: A. $196,000

Lenders base LTV on the lower of price or appraisal.
Lower number is $245,000.
80% of $245,000 = 0.80 × 245,000 = $196,000.

Question 4 · Area & price per square foot

A rectangular lot measures 120 feet by 150 feet. It sells for $4.20 per
square foot. What is the sale price?

  1. $50,400
  2. $63,000
  3. $75,600
  4. $90,000
Show answer & explanation

Correct answer: C. $75,600

Area = length × width = 120 ft × 150 ft = 18,000 sq ft.
18,000 sq ft × $4.20 = $75,600.

Question 5 · Loan interest (first month)

A borrower takes out a 30-year fixed-rate loan for $300,000 at 5% annual
interest. What is the interest portion of the first month’s payment?
(Round to the nearest dollar.)

  1. $1,050
  2. $1,125
  3. $1,250
  4. $1,500
Show answer & explanation

Correct answer: C. $1,250

Interest for the first month is based on the full principal balance.
Annual interest = $300,000 × 5% = $15,000.
Monthly interest = $15,000 ÷ 12 ≈ $1,250.

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