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1. I. DETERMINING A COMMISSION. Objective: Accurately compute the commission a seller will pay the listing broker upon the sale of a property, given a commission rate and a sales price. Example 1: A seller agreed to pay a 6% commission on the home she listed with a broker. The home sold for $80,000. How much was the commission? Example 2:
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Real estate math is incredibly important not only for the real estate exam but for your real estate career. Check out these practice questions and cheat sheet.
Net operating income – The total income of a property minus all operating expenses. Property tax – Property tax is a real estate ad-valorem tax, calculated by local government, which is paid by the owner of the property. The tax is usually based on the value of the owned property.
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— Calculating percentage change or delta “∆” is required in several of the capitalization techniques. The formula for “∆” is: final value starting value starting value . Example 1: What percentage of change occurs if a property purchased for $90,000 sells for $72,000? Answer:
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