Wisconsin Real Estate License Real Estate Math and Calculations

Question 1

A property sells for $320,000. The listing broker earns a 6% commission and splits it equally with the buyer's broker. How much does each broker receive?

Accepted Answer

$9,600

Answer

6% of $320,000 = $19,200 total commission; split equally gives each broker $9,600.

Question 2

A buyer makes a 20% down payment on a $275,000 home. What is the loan amount?

Accepted Answer

$220,000

Answer

The buyer finances 80% of $275,000: $275,000 × 0.80 = $220,000.

Question 3

A property has a loan balance of $180,000. The bank requires a maximum LTV of 80%. What is the minimum appraised value required?

Accepted Answer

$225,000

Answer

Minimum value = loan amount ÷ LTV ratio: $180,000 ÷ 0.80 = $225,000.

Question 4

Annual property taxes are $4,800. The closing occurs on April 1. The seller has not yet paid any taxes for the year. Using a 360-day year, how much does the seller owe the buyer at closing?

Accepted Answer

$1,200

Answer

Jan 1 to April 1 = 90 days; daily rate = $4,800 ÷ 360 = $13.33; 90 × $13.33 = $1,200.

Question 5

A home sells for $385,000. In Wisconsin, the real estate transfer fee is $3 per $1,000 of value. What is the total transfer fee?

Accepted Answer

$1,155

Answer

$385,000 ÷ 1,000 = 385 units × $3 = $1,155 transfer fee.

Wisconsin Real Estate License Practice Test

Wisconsin Real Estate License Practice Test

Wisconsin Real Estate License Real Estate Math and Calculations