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Texas real estate math drills with worked answers.

Practice the setup, then check the calculation.

Choose three questions on one topic or an 11-question mixed drill. Every answer shows the formula, the working and why the other choices miss. All 33 questions and explanations are free.

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Original teaching questions from the Pass Texas editorial team.

How should you approach a real estate math question?

Write down the quantity the question asks for. Choose the formula, identify the base and units, then calculate without rounding early. Use the rates and day-count assumptions supplied in the problem. Finally, check whether the size and direction of the answer make sense. The worked examples below follow that sequence.

Choose a topic. Work it out. Check the steps.

Use scratch paper and a calculator if helpful. There is no timer. Pick an answer before checking it, or reveal the steps without earning a point.

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One question from each topic, with the topic name hidden until you check. Work out which formula fits before calculating.

Question 1 of 110 checked

In a simplified tax problem, one taxing unit uses a $310,000 assessed value before exemptions and a stated $140,000 exemption. No other value limit applies. At $2.20 per $100 of taxable value, what annual tax does this unit levy?

Choose one answer$3,740$1,700$4,400$6,820

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The formulas behind the questions.

Start here if you need the setup. Follow a topic link to its worked answers, or use the matching calculator to try your own numbers.

Eleven study topics, not eleven official exam sections
Topic	Formula cue	Practice tool
Property tax	Taxable value ÷ 100 × rate per $100	Property tax calculator
Proration	Period amount ÷ period days × ownership days	Proration calculator
Commission split	Sale price × commission rate × side split × agent split − fees	Commission split calculator
LTV and down payment	Loan amount ÷ applicable property value × 100	LTV and down payment calculator
Mortgage ratios	Monthly obligations ÷ gross monthly income × 100	Mortgage ratios calculator
Cap rate and NOI	Cap rate (decimal) = annual NOI ÷ value; value = annual NOI ÷ cap rate	Cap rate and NOI calculator
GRM	Value = gross rent × GRM	GRM calculator
Area and acreage	1 acre = 43,560 sq ft; a standard section = 640 acres	Area and acreage calculator
Comparable adjustment	Comparable sale price ± feature adjustments	Comparable adjustment calculator
Seller net	Sale price − payoff − commission − seller costs − credits	Seller net calculator
Equity	Current market value − debt secured by the property	Equity calculator

For the printable reference, use the real estate math formula cheat sheet. For additional problem types, explore all real estate calculators.

All 33 questions and worked solutions.

Open one topic at a time. These examples use supplied values, not current market prices, a real tax estimate, or a lending decision.

Property tax: 3 worked questions

Property tax

Use the taxable value for the taxing unit in the problem. If you must calculate it, apply the stated exemptions and any value limits first.

1. In a simplified tax problem, one taxing unit uses a $310,000 assessed value before exemptions and a stated $140,000 exemption. No other value limit applies. At $2.20 per $100 of taxable value, what annual tax does this unit levy?

$6,820
$3,740
$1,700
$4,400

Answer: $3,740

First move: Subtract the stated exemption before touching the tax rate.

Taxable value ÷ 100 × rate per $100

Work: ($310,000 − $140,000) ÷ 100 × $2.20 = 1,700 × $2.20 = $3,740

The taxable value is $170,000. Applying this unit's stated rate gives $3,740. These are supplied study assumptions, not a claim that every Texas taxing unit allows this exemption or charges this rate.

Why the other choices miss:

$6,820: This taxes the $310,000 assessed value without the exemption.
$1,700: This is the number of $100 units before multiplying by $2.20.
$4,400: This amount would require a $200,000 taxable base, not $170,000.

Watch for: Applying the rate to the full assessed value produces the $6,820 distractor.

2. A property has a taxable value of $264,000. The combined tax rate is $2.05 per $100 of value. What is the annual property tax?

$5,412
$541.20
$2,640
$6,600

Answer: $5,412

First move: Convert the taxable value into $100 units.

Taxable value ÷ 100 × rate per $100

Work: $264,000 ÷ 100 × $2.05 = 2,640 × $2.05 = $5,412

The stated rate applies once to each $100 of taxable value.

Why the other choices miss:

$541.20: This is ten times too small; check the per-$100 conversion.
$2,640: This is the number of $100 units before the tax rate is applied.
$6,600: This would use $2.50 per $100 instead of $2.05.

Watch for: The taxable value has already been supplied. Do not subtract an exemption again or forget the per-$100 conversion.

3. For one taxing unit, a classroom problem supplies a $420,000 assessed value before exemptions, a $140,000 exemption, and no other value limit. Its rate is $1.85 per $100 of taxable value. What is the annual tax for that unit?

$7,770
$5,180
$2,590
$4,200

Answer: $5,180

First move: Build the $280,000 taxable base first.

(Assessed value − applicable exemption) ÷ 100 × rate

Work: ($420,000 − $140,000) ÷ 100 × $1.85 = 2,800 × $1.85 = $5,180

Exemptions reduce the taxable base. They are not subtracted from the final tax bill.

Why the other choices miss:

$7,770: This applies the rate before subtracting the exemption.
$2,590: This taxes the $140,000 exemption instead of the $280,000 taxable value.
$4,200: This would be a $1.50 rate on the taxable base, not $1.85.

Watch for: Subtracting $140,000 after calculating tax has no mathematical or tax meaning.

Use the property tax calculator Topic source: Texas Tax Code 1.04(9)-(10): assessed and taxable value

Proration: 3 worked questions

Proration

Identify the period, day-count method, ownership days, and debit-credit direction before calculating.

1. Unpaid annual property taxes are $4,380, which the buyer will pay after closing. Closing is September 12, 2026, and the seller owns closing day. Use actual calendar days and a 365-day year. What credit does the buyer receive for the seller's share?

$1,320
$3,060
$3,048
$4,380

Answer: $3,060

First move: Count seller ownership through September 12 because the seller owns closing day.

Annual amount ÷ 365 × seller days

Work: $4,380 ÷ 365 = $12 per day; 255 seller days × $12 = $3,060

January through August contributes 243 days, and September 1 through 12 adds 12, for 255 seller days.

Why the other choices miss:

$1,320: This is the buyer's remaining 110-day share.
$3,048: This excludes September 12, which belongs to the seller here.
$4,380: This assigns the full annual bill to the seller rather than prorating it.

Watch for: Stopping at September 11 removes one day and creates a close distractor.

2. Annual property taxes are $3,600. Closing is April 15, 2026, and the buyer owns closing day. Using actual calendar days and a 365-day year, what is the seller's tax share, rounded to cents?

$1,025.75
$1,035.62
$2,574.25
$1,050.00

Answer: $1,025.75

First move: Count only January 1 through April 14 for the seller.

Annual amount ÷ 365 × seller days

Work: $3,600 ÷ 365 × 104 days = $1,025.75

The seller owns 104 days. Keep the daily rate unrounded until the final answer.

Why the other choices miss:

$1,035.62: This includes April 15 in the seller's days.
$2,574.25: This is the buyer's remaining share after the seller's allocation.
$1,050.00: The stated 365-day method gives $1,025.75; do not replace it with a different day count.

Watch for: Including April 15 gives the seller a day the problem assigns to the buyer.

3. Annual taxes are $7,200. Closing is June 18 and the seller owns closing day. Use a 30/360 method: each month has 30 days and the year has 360. What is the seller's share?

$3,360
$3,340
$3,600
$3,580

Answer: $3,360

First move: Use the 30-day months and 360-day year expressly stated in the problem.

Annual amount ÷ 360 × seller days

Work: $7,200 ÷ 360 = $20 per day; (5 × 30 + 18) × $20 = 168 × $20 = $3,360

A banker's year treats each full month as 30 days for this classroom setup.

Why the other choices miss:

$3,340: This omits June 18, the seller's closing day.
$3,600: This charges the seller for 180 days rather than 168.
$3,580: This uses 179 days rather than the stated five 30-day months plus 18 days.

Watch for: A 360-day denominator alone does not tell you the numerator's day-count method. This question explicitly requires 30-day months, not actual calendar days.

Use the proration calculator Topic source: CFPB: Closing Disclosure adjustments and seller credits

Commission split: 3 worked questions

Commission split

Move through the money in order: total commission, brokerage side, agent split, then stated fees.

1. A home sells for $390,000 with an agreed 6% total commission. The listing side receives half. The sales agent gets 70% of that side and pays a $295 transaction fee. What does the agent keep before taxes?

$7,895
$8,190
$11,700
$23,400

Answer: $7,895

First move: Calculate the total commission before applying either split.

Sale price × rate × side split × agent split − fee

Work: $390,000 × 6% = $23,400; × 50% = $11,700; × 70% = $8,190; − $295 = $7,895

Each percentage applies to the amount produced by the prior step. The rate and splits are supplied assumptions, not standard or required commission terms.

Why the other choices miss:

$8,190: This is the agent's share before the $295 fee.
$11,700: This is the listing side's share before the agent split.
$23,400: This is total commission before both splits and the fee.

Watch for: Stopping at total commission, brokerage-side commission, or pre-fee agent share matches three different distractors.

2. A $525,000 sale has an agreed 5% total commission. The buyer brokerage receives 40% of the total, and the sales agent receives 75% of that brokerage share. What is the agent's gross commission?

$7,875
$10,500
$19,687.50
$26,250

Answer: $7,875

First move: Respect the stated 40% side split instead of assuming 50/50.

Sale price × total rate × brokerage share × agent share

Work: $525,000 × 5% × 40% × 75% = $7,875

The problem gives two separate splits after total commission.

Why the other choices miss:

$10,500: This is the buyer brokerage's share before the agent split.
$19,687.50: This applies 75 percent to total commission and skips the 40 percent brokerage share.
$26,250: This is total commission before either split.

Watch for: A brokerage split is not automatically equal. Use the percentage supplied in the question.

3. A brokerage side earns $9,000. The agent receives 65% of that side, then keeps 80% after a team split. What amount reaches the agent before taxes?

$4,680
$5,850
$7,200
$3,150

Answer: $4,680

First move: Apply the broker split, then the team split, to the shrinking balance.

Brokerage-side commission × agent split × retained team share

Work: $9,000 × 65% × 80% = $4,680

The agent first receives $5,850 from the brokerage split and then retains 80% of that amount.

Why the other choices miss:

$5,850: This stops after the 65 percent brokerage split.
$7,200: This takes 80 percent of the full $9,000 and skips the first split.
$3,150: This is the brokerage's retained 35 percent, not the agent's final share.

Watch for: Adding 65% and 80% or applying both percentages to the original sale price is incorrect.

Use the commission split calculator Topic source: Texas Occupations Code 1101.155(c): commissions are negotiable

LTV and down payment: 3 worked questions

LTV and down payment

Divide the loan by the property value the problem specifies. These purchase examples expressly use the lower of price or appraisal.

1. A buyer pays $365,000 for a property appraised at $350,000 and borrows $280,000. For this problem, use the lower of price or appraisal as the LTV base. What is the LTV?

76.7%
80%
85%
95.9%

Answer: 80%

First move: Use the $350,000 appraisal because it is lower than the price.

Loan amount ÷ applicable property value × 100

Work: $280,000 ÷ $350,000 × 100 = 80%

The question tells you to use the lower of price or appraisal. Dividing by that $350,000 base gives an 80% LTV.

Why the other choices miss:

76.7%: This uses the higher purchase price instead of the required lower appraisal.
85%: An 85 percent LTV on $350,000 would require a $297,500 loan.
95.9%: This divides the $350,000 appraisal by the $365,000 price. LTV uses loan divided by the required value base.

Watch for: Dividing by the $365,000 sale price produces the 76.7% distractor.

2. A property sells for $320,000 and appraises for $335,000. The stated loan limit is 85% of the lower of price or appraisal. What is the maximum loan amount under that limit?

$272,000
$284,750
$48,000
$51,000

Answer: $272,000

First move: Choose the lower $320,000 purchase price as the base.

Applicable property value × LTV rate

Work: $320,000 × 85% = $272,000

An 85% loan on the lower value leaves $48,000 between price and loan before closing costs.

Why the other choices miss:

$284,750: This uses the higher appraisal rather than the lower price.
$48,000: This is the price minus the allowed loan, not the loan itself.
$51,000: The purchase price minus the allowed loan is $48,000. A $51,000 down payment would use different inputs, and the question asks for the loan.

Watch for: Using the higher appraisal produces $284,750 and overstates the loan in this purchase setup.

3. A borrower requests a $247,500 loan on a property valued at $330,000. What is the LTV?

75%
25%
82.5%
133.3%

Answer: 75%

First move: Put the loan in the numerator and the property value in the denominator.

Loan amount ÷ property value × 100

Work: $247,500 ÷ $330,000 × 100 = 75%

LTV measures the financed amount as a share of property value.

Why the other choices miss:

25%: This is the unfinanced share, not LTV.
82.5%: An 82.5 percent LTV would require a $272,250 loan.
133.3%: This reverses the fraction, dividing value by loan.

Watch for: Reversing numerator and denominator produces a value over 100%.

Use the ltv and down payment calculator Topic source: Fannie Mae B2-1.2-01: purchase and refinance LTV bases

Mortgage ratios: 3 worked questions

Mortgage ratios

Use gross monthly income. Housing ratio uses housing expense, while total DTI adds the recurring debts stated in the problem.

1. A buyer has $9,200 gross monthly income, $2,576 in monthly principal, interest, taxes, and insurance (PITI), and $625 in other recurring monthly debt. No other obligations apply. What is the total DTI, rounded to one decimal place?

28%
34.8%
24.2%
31.1%

Answer: 34.8%

First move: Add housing and other recurring debt before dividing by gross income.

Total monthly obligations ÷ gross monthly income × 100

Work: ($2,576 + $625) ÷ $9,200 × 100 = 34.8%

Total DTI includes the stated housing payment and other recurring monthly obligations.

Why the other choices miss:

28%: This is the housing ratio and excludes the $625 other debt.
24.2%: The stated obligations total $3,201, which is more than 24.2 percent of income.
31.1%: The stated obligations total $3,201, which is more than 31.1 percent of income.

Watch for: Using housing alone gives 28%, which is the housing ratio, not total DTI.

2. A buyer earns $8,500 in gross monthly income and has a proposed $2,210 monthly housing expense. What is the housing expense ratio?

26%
38.5%
74%
20.8%

Answer: 26%

First move: Use housing expense only because the question asks for the housing ratio.

Monthly housing expense ÷ gross monthly income × 100

Work: $2,210 ÷ $8,500 × 100 = 26%

The denominator is gross income before taxes and deductions.

Why the other choices miss:

38.5%: Housing divided by $8,500 gives 26 percent; 38.5 percent uses a different relationship.
74%: This is the share of gross income left after housing expense.
20.8%: 20.8 percent of $8,500 is $1,768, below the stated housing expense.

Watch for: Do not use take-home pay or add debts that the question did not ask you to include.

3. A classroom problem gives 28% housing and 36% total-DTI limits. Gross monthly income is $10,000 and other monthly debt is $1,000. What maximum housing payment satisfies both limits?

$2,600
$2,800
$3,600
$1,800

Answer: $2,600

First move: Calculate both limits and use the lower housing result.

Lower of housing limit or total-DTI room after other debt

Work: $10,000 × 28% = $2,800; $10,000 × 36% − $1,000 = $2,600; use $2,600

Both stated limits must hold. The total-DTI calculation is the tighter constraint here.

Why the other choices miss:

$2,800: This meets the housing limit but makes total DTI 38 percent, above 36 percent.
$3,600: This is the total-debt limit before subtracting other debt; it also exceeds the housing limit.
$1,800: This satisfies both limits but is below the maximum allowed $2,600.

Watch for: The 28/36 figures are supplied classroom assumptions, not universal approval limits for every lender or loan product.

Use the mortgage ratios calculator Topic source: Consumer Financial Protection Bureau, debt-to-income ratio

Cap rate and NOI: 3 worked questions

Cap rate and NOI

Build NOI from property income and operating expenses, then keep financing and owner income taxes outside NOI.

1. An income property has $96,000 annual net operating income (NOI). Using the stated 8% capitalization rate, what is the indicated value?

$768,000
$1,000,000
$1,200,000
$12,000

Answer: $1,200,000

First move: Solve the income triangle for value by dividing NOI by the rate.

Value = NOI ÷ cap rate

Work: $96,000 ÷ 0.08 = $1,200,000

The cap rate must be written as a decimal before division.

Why the other choices miss:

$768,000: This would produce a 12.5 percent cap rate on $96,000 NOI.
$1,000,000: This would produce a 9.6 percent cap rate.
$12,000: This amount is far too small: 8 percent of it is only $960.

Watch for: Multiplying NOI by 8% produces $7,680, which is not a property value.

2. A property's annual figures are $120,000 potential rent, 5% vacancy and collection loss on that rent, $4,000 other income, and $46,000 total operating expenses. What is its annual NOI?

$72,000
$68,000
$74,000
$78,000

Answer: $72,000

First move: Build effective gross income before subtracting operating expenses.

Potential income − vacancy loss + other income − operating expenses

Work: $120,000 − $6,000 + $4,000 − $46,000 = $72,000

Five percent vacancy on $120,000 is $6,000. Debt service and depreciation are not part of this NOI calculation.

Why the other choices miss:

$68,000: This deducts vacancy but omits the $4,000 other income.
$74,000: This subtracts operating expenses from rent but omits both vacancy and other income.
$78,000: This includes other income and expenses but omits the $6,000 vacancy loss.

Watch for: Subtract vacancy before adding the other income. Do not deduct debt service or depreciation as operating expenses when calculating NOI.

3. An investment property is valued at $750,000 and produces $67,500 annual NOI. What is the cap rate?

9%
11.1%
5.1%
90%

Answer: 9%

First move: Put NOI over value.

Cap rate = NOI ÷ value × 100

Work: $67,500 ÷ $750,000 × 100 = 9%

Cap rate expresses annual NOI as a percentage of value.

Why the other choices miss:

11.1%: Value divided by NOI is about 11.11 as a multiplier; it is not an 11.1 percent cap rate.
5.1%: A 5.1 percent rate on $750,000 would produce $38,250 NOI.
90%: This is ten times the correct rate; 0.09 is 9 percent.

Watch for: Reversing the fraction produces a value-to-income multiplier of about 11.11. It is not a cap-rate percentage.

Use the cap rate and noi calculator Topic source: California BOE: general income calculations, not Texas tax law

GRM: 3 worked questions

GRM

Match the rent period to the multiplier. Monthly rent needs monthly GRM, and annual rent needs annual GRM.

1. A rental property's gross rent is $2,500 per month. Comparable annual GRM is 11. What is the estimated value?

$27,500
$300,000
$330,000
$363,000

Answer: $330,000

First move: Convert monthly rent to annual rent because the multiplier is annual.

Annual gross rent × annual GRM

Work: $2,500 × 12 × 11 = $330,000

Annual rent is $30,000, and $30,000 multiplied by 11 produces $330,000.

Why the other choices miss:

$27,500: This multiplies monthly rent by an annual multiplier without annualizing rent.
$300,000: This uses a multiplier of 10 rather than 11.
$363,000: This would use annual rent of $33,000, not $30,000.

Watch for: Multiplying the monthly rent directly by an annual GRM produces $27,500.

2. A comparable monthly GRM is 140 and the subject's monthly gross rent is $2,400. What value is indicated?

$336,000
$28,800
$201,600
$403,200

Answer: $336,000

First move: Keep the rent monthly because the GRM is monthly.

Monthly gross rent × monthly GRM

Work: $2,400 × 140 = $336,000

The rent period and multiplier period already match, so no annual conversion is needed.

Why the other choices miss:

$28,800: This is annual gross rent, not estimated property value.
$201,600: This uses a multiplier of 84, not the supplied 140.
$403,200: This uses a multiplier of 168, not the supplied 140.

Watch for: Multiplying by 12 again mixes periods and overstates value.

3. A comparable property sold for $480,000 and rents for $3,200 per month. What is its monthly GRM?

150
12.5
1,800
153.6

Answer: 150

First move: Divide sale price by monthly gross rent.

Monthly GRM = sale price ÷ monthly gross rent

Work: $480,000 ÷ $3,200 = 150

GRM is a multiplier, not a percentage, so the answer is 150 without a percent sign.

Why the other choices miss:

12.5: This divides price by annual rent and gives annual GRM.
1,800: This multiplies the monthly GRM by 12 instead of matching the rent period.
153.6: The supplied price divided by rent is exactly 150; 153.6 uses different inputs.

Watch for: Converting rent to annual before using a monthly GRM formula produces 12.5, a different-period measure.

Use the grm calculator Topic source: Fannie Mae B4-1.3-10: income approach and gross rent multiplier

Area and acreage: 3 worked questions

Area and acreage

Name the shape or land fraction, find square feet or section acreage, then convert only once.

1. A rectangular parcel measures 220 feet by 198 feet. How many acres is the parcel?

0.5 acres
1 acre
1.5 acres
43.56 acres

Answer: 1 acre

First move: Find rectangle area in square feet, then divide by 43,560.

Length × width ÷ 43,560

Work: 220 × 198 = 43,560 sq ft; 43,560 ÷ 43,560 = 1 acre

Pearson identifies 43,560 square feet per acre as a figure candidates should memorize.

Why the other choices miss:

0.5 acres: This is half the calculated parcel area.
1.5 acres: This would require 65,340 square feet.
43.56 acres: This would require far more land than the 43,560-square-foot parcel.

Watch for: Convert square feet to acres after finding the area. Dividing just one side length by 43,560 does not convert the parcel's area.

2. A triangular tract has a 300-foot base and a perpendicular height of 180 feet. Approximately how many acres does it contain?

0.62 acres
1.24 acres
0.41 acres
2.07 acres

Answer: 0.62 acres

First move: Use one-half base times perpendicular height.

Base × height ÷ 2 ÷ 43,560

Work: 300 × 180 ÷ 2 = 27,000 sq ft; 27,000 ÷ 43,560 = 0.62 acres

A triangle is half the rectangle created by the same base and perpendicular height.

Why the other choices miss:

1.24 acres: This omits the one-half factor in the triangle formula.
0.41 acres: This would be about 18,000 square feet, below the calculated 27,000.
2.07 acres: This would be about 90,169 square feet, far above the calculated area.

Watch for: Using base times height without dividing by two produces the 1.24-acre distractor.

3. In the standard government survey model, how many acres are in the NE 1/4 of the SW 1/4 of one section?

40 acres
80 acres
160 acres
20 acres

Answer: 40 acres

First move: Multiply the nested fractions, then apply them to 640 acres.

1/4 × 1/4 × 640 acres

Work: 1/16 × 640 = 40 acres

A quarter-quarter section is one-sixteenth of a standard 640-acre section. This is the national government-survey model, not a claim that Texas land generally uses that survey system.

Why the other choices miss:

80 acres: This describes one-eighth of a section, not one-sixteenth.
160 acres: This stops after the first quarter.
20 acres: This describes one-thirty-second of a section, one division too many.

Watch for: Adding the fractions or stopping after the first quarter produces an oversized tract.

Use the area and acreage calculator Topic source: OpenStax: area and perpendicular height

Comparable adjustment: 3 worked questions

Comparable adjustment

Adjust the comparable toward the subject: add when the comparable is inferior and subtract when it is superior.

1. A comparable sold for $410,000. Use supplied market-supported adjustments of $18,000 for a garage and $7,000 for roof condition. The comp lacks the subject's garage but has a newer roof. What is the adjusted comp value?

$399,000
$421,000
$435,000
$401,000

Answer: $421,000

First move: Adjust the comparable, adding for its missing garage and subtracting for its superior roof.

Comparable price + inferior features − superior features

Work: $410,000 + $18,000 − $7,000 = $421,000

The adjustments move the comparable toward the subject's feature set.

Why the other choices miss:

$399,000: This reverses both signs: it subtracts the missing garage and adds the superior roof.
$435,000: This adds both adjustments instead of subtracting for the superior roof.
$401,000: This reduces the comp price by $9,000. The stated adjustments give a net addition of $11,000.

Watch for: Reversing both signs produces $399,000.

2. A comparable sold for $350,000. It has a pool the subject lacks, but its kitchen is inferior to the subject's. Use supplied market-supported adjustments of $25,000 for the pool and $15,000 for the kitchen. What is the adjusted comp value?

$340,000
$360,000
$390,000
$310,000

Answer: $340,000

First move: Subtract for the comp's superior pool, then add for its inferior kitchen.

Comparable price − superior feature + inferior feature

Work: $350,000 − $25,000 + $15,000 = $340,000

Each sign comes from the comparable's relationship to the subject, not from whether the feature sounds desirable.

Why the other choices miss:

$360,000: This reverses both adjustment signs.
$390,000: This adds both adjustments.
$310,000: This subtracts both adjustments.

Watch for: A pool is not always an addition. It is subtracted here because only the comparable has it.

3. A comparable sold for $500,000. It is 200 square feet smaller than the subject. Use a supplied market-supported adjustment of $150 per square foot and subtract $20,000 for its superior view. What is the adjusted comp value?

$510,000
$450,000
$550,000
$490,000

Answer: $510,000

First move: Turn the size difference into dollars before combining adjustments.

Comparable price + size deficiency − superior feature

Work: $500,000 + (200 × $150) − $20,000 = $510,000

The comp is inferior in size by $30,000 and superior in view by $20,000.

Why the other choices miss:

$450,000: This reverses both signs.
$550,000: This adds both the size deficiency and superior view.
$490,000: This subtracts the size adjustment and adds the view adjustment.

Watch for: Adjusting the subject or applying both adjustments in the same direction misses the comparison logic.

Use the comparable adjustment calculator Topic source: Fannie Mae B4-1.3-09: market-supported comparable adjustments

Seller net: 3 worked questions

Seller net

Separate equity from proceeds. Seller net subtracts the payoff and every stated seller cost from the sale price.

1. A seller closes at $425,000 with a $298,000 loan payoff, 6% commission, and $3,200 in other seller costs. What is the seller net?

$98,300
$95,325
$124,025
$100,800

Answer: $98,300

First move: Calculate commission, then subtract every seller-side outflow once.

Sale price − payoff − commission − other seller costs

Work: $425,000 − $298,000 − $25,500 − $3,200 = $98,300

The result is the cash remaining after all charges supplied in this problem. It is not an estimate of every possible cost in a real closing.

Why the other choices miss:

$95,325: The listed charges total $326,700; subtracting them from $425,000 leaves $98,300.
$124,025: This exceeds the $127,000 equity less the stated $28,700 selling costs.
$100,800: This exceeds the result after all stated costs by $2,500.

Watch for: Equity is not seller net because selling costs still reduce proceeds.

2. A seller wants $200,000 after a $150,000 payoff, $5,000 in fixed seller costs, and a 6% commission. Approximately what sale price is required?

$377,660
$355,000
$372,340
$382,979

Answer: $377,660

First move: Put percentage costs on the sale-price side of the equation.

Required price = (desired net + payoff + fixed costs) ÷ (1 − commission rate)

Work: ($200,000 + $150,000 + $5,000) ÷ 0.94 = $377,659.57, or about $377,660

The commission depends on the unknown sale price, so simply adding 6% to the required cash understates the price.

Why the other choices miss:

$355,000: This covers desired net, payoff and fixed costs but leaves no room for commission.
$372,340: After 6 percent commission this leaves $350,000, below the $355,000 required before fixed outflows.
$382,979: After 6 percent commission this leaves about $360,000, above the specified $355,000 requirement.

Watch for: Adding $355,000 and 6% produces $376,300, but 6% of that new price is larger than the amount added.

3. A home sells for $600,000. Seller charges are a $390,000 payoff, 5.5% commission, $8,500 other costs, and a $7,500 buyer credit. What is the seller net?

$161,000
$168,500
$194,000
$176,000

Answer: $161,000

First move: Treat the buyer credit as another reduction to seller proceeds.

Sale price − payoff − commission − costs − seller credit

Work: $600,000 − $390,000 − $33,000 − $8,500 − $7,500 = $161,000

Every listed seller obligation reduces the cash remaining at closing.

Why the other choices miss:

$168,500: This omits the $7,500 buyer credit.
$194,000: This exceeds the $161,000 net by the $33,000 commission.
$176,000: This exceeds the correct net by $15,000; check that the buyer credit reduces proceeds.

Watch for: Leaving out the buyer credit produces the $168,500 distractor.

Use the seller net calculator Topic source: CFPB: Closing Disclosure adjustments and seller credits

Equity: 3 worked questions

Equity

Equity is the value left after debt. It is not automatically the same as profit or cash at closing.

1. A property is worth $470,000. Its only secured debt is a mortgage with a $318,000 remaining balance. What is the owner's equity before selling costs?

$152,000
$318,000
$470,000
$788,000

Answer: $152,000

First move: Subtract secured debt from current market value.

Current value − mortgage balance

Work: $470,000 − $318,000 = $152,000

Equity is the ownership value left after the debt balance.

Why the other choices miss:

$318,000: This is the remaining mortgage debt.
$470,000: This is the current value before subtracting debt.
$788,000: This adds value and debt instead of subtracting debt.

Watch for: Selling costs affect net proceeds, not this basic equity calculation.

2. A property was bought for $360,000, is now worth $450,000, and has a $300,000 loan balance as its only secured debt. What is the current equity?

$150,000
$90,000
$60,000
$300,000

Answer: $150,000

First move: Use current value and current debt. The old purchase price answers a different question.

Current market value − current debt

Work: $450,000 − $300,000 = $150,000

The $90,000 increase from purchase price is appreciation, not total equity.

Why the other choices miss:

$90,000: This is appreciation since purchase, not current equity.
$60,000: This is purchase price less today's debt and ignores the current value.
$300,000: This is the debt balance.

Watch for: Confusing appreciation with equity ignores the owner's original and repaid principal position.

3. A property that once was worth $400,000 is now worth $360,000. Its only secured debt is a $275,000 loan. What is the current equity?

$85,000
$125,000
$40,000
$635,000

Answer: $85,000

First move: Use today's value, not the prior value or the amount of depreciation.

Current market value − current debt

Work: $360,000 − $275,000 = $85,000

The $40,000 value decline and the $85,000 current equity are separate measures.

Why the other choices miss:

$125,000: This uses the old $400,000 value rather than today's value.
$40,000: This is the decline in property value, not current equity.
$635,000: This adds current value and debt instead of subtracting debt.

Watch for: A decline in value reduces equity but does not replace the equity formula.

Use the equity calculator Topic source: CFPB: mortgage terms and equity

How these drills fit the Texas exam syllabus.

The Pearson VUE Salesperson National outline assigns seven scored math items: one each for area, valuation, commissions, financing costs, settlement, investment and property management. The cognitive mix is four application and three analysis items. Numerical work also appears in other exam areas.

Our 11 study topics let you repeat a setup before mixing it with others. They do not reproduce the exam's weighting or cover every listed skill. For points, payment factors, depreciation and rental income, try the 15-question math quiz. Use the full formula guide for the broader reference.

National principles, Texas context

Area, valuation, equity, ratios, and proration are general real estate math. Tax examples use expressly supplied assumptions. The government-survey question uses a standard section model, not a claim about how all Texas parcels are described.

Read the assumptions

Rates and commission splits are supplied study figures, not required terms. Tax exemptions depend on the taxing unit and property. Loan limits vary by product and lender. Use the numbers and method specified in each question.

Use the right units

Match annual NOI to an annual cap rate and monthly rent to a monthly multiplier. For proration, check the year basis and who owns closing day. Keep intermediate calculations precise, then round the final result as instructed.

Turn one tricky setup into something you understand.

If you missed the base or units, redo the focused topic and write the formula before entering numbers. If only the arithmetic went wrong, check it with the linked calculator. When you can explain the setup without the cue, try the mixed drill, then the timed practice exam.

Before your next drill.

Are all 33 questions free?

Yes. All questions, explanations, calculators linked here, and the formula reference can be used without an account. The web and mobile study app offers selected free content and an optional full-access purchase.

Does a perfect score mean I am ready for the exam?

No. Three questions on a topic or one question per topic cannot establish mastery or predict a pass. A repeat uses the same 33-question bank, even when the order changes. Check your understanding with unfamiliar questions and review non-math topics too.

Does the mixed drill generate unlimited new questions?

No. It selects one question from each of the 11 topics. Rotating the set changes the selection and order within the same bank. A focused drill always uses the same three questions for that topic, with their order and answer positions rotated on retry.

Can I save this score to my account?

Not from this drill. Its completed best score stays in this browser when storage is available; clearing browser data removes it. To carry a website test result into an account, use the separate practice exam and its save-result option. Practice completed inside the study app is separate.

Should I use a calculator while practicing?

Yes, after you write the setup. Pearson recommends bringing an acceptable calculator and does not provide one. Storage capability is allowed, but alphabetic keys are not; mathematical labels such as sin and cos are allowed. Memorize 43,560 square feet per acre and 5,280 feet per mile. See the handbook's calculator and note-material rules and our calculator guide.

Sources and calculation checks.

Last reviewed: October 13, 2026. Pearson defines the syllabus and test conventions. Texas law supplies tax and commission rules; CFPB, Fannie Mae and the other linked authorities explain the financial methods. OpenStax supports arithmetic and geometry. California BOE income examples and BLM survey guidance are used for general concepts, not Texas tax or land-description rules.

All 33 correct choices were independently recalculated and covered by automated checks. These exercises are educational, not tax, lending, appraisal, or legal advice for a transaction.