Real Estate Math & Calculations Flashcards
6 cards from real BC Real Estate Trading Services Course practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Real Estate Math & Calculations flashcards as text
A BC seller receives an offer of $800,000. After paying a 3.5% commission and $4,200 in legal/notary fees, how much does the seller net?
Answer: $767,800
Commission = 3.5% × $800,000 = $28,000. Net = $800,000 - $28,000 - $4,200 = $767,800.
A BC rental property earns $3,200/month. After 5% vacancy allowance, what is the effective monthly income?
Answer: $3,040
Vacancy loss = 5% × $3,200 = $160. Effective income = $3,200 - $160 = $3,040.
A BC property has a lot size of 7,500 sq ft. The zoning allows a floor space ratio (FSR) of 0.5. What is the maximum allowable building floor area?
Answer: 3,750 sq ft
Maximum floor area = Lot size × FSR = 7,500 × 0.5 = 3,750 sq ft.
A BC agent earns a salary of $3,000/month plus 1.2% of personal sales. This month, sales total $1,800,000. What are total earnings?
Answer: $24,600
Commission = 1.2% × $1,800,000 = $21,600. Total = $3,000 + $21,600 = $24,600.
A BC property sold for $940,000, which represents a 17.5% increase over the price paid 4 years ago. What was the original purchase price?
Answer: $800,000
Original price = Current price ÷ (1 + appreciation rate) = $940,000 ÷ 1.175 = $800,000.
A BC buyer's TDS calculation: housing costs $2,800/month, car loan $550/month, credit card minimum $150/month. Gross income is $9,000/month. Is this TDS ratio acceptable under standard Canadian lending guidelines?
Answer: Yes — TDS is 38.9%, within the 44% limit
TDS = Total monthly debt ÷ Gross monthly income = ($2,800 + $550 + $150) ÷ $9,000 = $3,500 ÷ $9,000 = 38.9%. This is below the standard 44% TDS maximum and is acceptable.