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REAL ESTATE EXAM MATH - PERCENTAGES BASICS

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As always we are bringing you Valuable information that will ensure that you pass your exam. We have broken and made a summary of all the real estate math calculation formula that you will need in the series. You can even use this Real estate math to guide you after you pass your real estate exam. Don't forget to we have 400 real estate practice questions at AgentExamBank.com starting at $14.99 for 7 Day Access to National Exam Bank. Find us on Youtube and Subscribe


IMPORTANT RULES

PERCENTAGES IN REAL ESTATE EXAM RULE 1


Percentages should be in decimal form when performing calculations.

For example: 79% = 0.79

2% = 0.02

125% = 1.25


HOW DO YOU GET THE DECIMAL POINT FROM ?

Divide the percent number by 100


EXAMPLE

When given 7% in a problem , convert right away to this form :

7 ÷ 100 = 0.07


RULE 2

Don't Leave your Answer in decimal form when asked to give a Percentage answer.

(Unless the multiple choices are in Decimal Form)


For example:

HOW DO YOU GET PERCENTAGE FORM IF YOU HAVE DECIMAL POINT FROM ?

Multiple the Decimal Form by 100


EXAMPLE

When given 0.07 in a problem or when your answer from your calculator shows up as 0.07, convert right away to Percentage by:

0.07 x 100 = 7%


Commission Percentages


Type 1

Commission Earned Percentages

Sale price × commission rate = commission earned


Example 1 : You’re a an agent who sells a house. Sarah, the owner, has agreed to pay you a 5 percent commission. How much will you earn on the sale, if the house sells for $600,000?


Step 1 : Convert 5% to Decimal Form

5 ÷ 100 = 0.05


Step 2 : 600,000 x 0.05

ANSWER = $30,000


Type 2

What was your Commission Rate( rule 2 applies here)

Commission earned ÷ sale price = commission rate


Example 1 : Joe sold a listed house for $400,000. He earned a $20,000 commission on the sale. What was his commission rate?


Commission earned ÷ sale price = commission rate

Step 1: $20,000 ÷ $400,000 = 0.05


Step 2: 0.05 x 100

Answer = 5%



DIFFERENT TYPES OF COMMISSION QUESTIONS ON THE REAL ESTATE EXAM

Unfortunately there are many ways that the Real estate exam will write the questions. We highly recommend that you cover over as many multiple exam questions as possible.

That is why we have create AgentExambank.com to help . Access over 350 Exam questions today. Get Access Select from 7 days access or 1,3, 6 month access starting at $14.99.

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