Maine Real Estate MATH SECTION()Questions & Answers 100% Correct(SCORED A+)

XYZ Realty policy manual shows the following compensation structure: Commission rate charged - 6% to XYZ Realty; 50% to the listing agent. If sold by another company, the commission is split equally. An agent from ABC Realty secured the buyer. Her company policy is, that as the selling agent, she will be paid 40% of her broker's share. If the sales price of the house was $395,000, how much does each party receive? - ANSWER$395,000 x 6% = $23,700 Total Commission $23,700 ÷ 2 = $11,850 Split between the two companies $11,850 x 50% = $5,925 to Listing Broker and $5,925 to Listing Agent $11,850 x 60% = $7,110 to Selling Broker $11,850 x 40% = $4,740 to Selling Agent LaBoo's selling expenses were as follows: 7% brokerage commission; $150,000 mortgage payoff; $95 deed preparation; $858 transfer taxes; and since taxes were paid in advance, she received tax credit of $1,325. She left the closing table with a check for $100,047. What was the sale price of the property? - ANSWER$268,467.74 The pay check stubs reveal that Mr. Lambert's gross monthly income is $7,000 per month and Mrs. Lambert's gross monthly income is $7,000 per month. One car payment is $450 and the second car payment is $500. Their credit cards payments are $350, $300 and $250. Estimated annual taxes on the house they want to purchase are $5,000 and the homeowner's insurance policy is $750. If they negotiate a conventional loan, what is their maximum principal and interest payment? - ANSWER$3,190 Andrea bought a property with a 20% down payment for a 30 year loan at 7% interest. If her first month's interest was $787.50, what was the amount of her loan? - ANSWERB. $135,000 The buyer made an offer of 95% of the listed price of $275,000. The offer was accepted and the buyer had a $50,000 down payment. The buyer and seller agreed to split the 3 discount points that was charged on the loan. The buyer paid a 1% origination fee. How much did the buyer pay in points and the origination fee? - ANSWER$275,000 x 95% = $261,250 Sale Price $261,250 - $50,000 = $211,250 Loan $211,250 x 3% = $6,337.50 Discount Points $6,337.50 divided by 2 = $3,168.75 Discount Points paid by buyer $211,250 x 1% = $2,112.50 Origination Fee paid by buyer $3,168.75 $2,112.50 = $5,281.25 Fees paid by buyer Ms. Taylor's annual tax bill is $2,340. Properties are assessed at 80% of the market value and the local tax rate is $2.22 per hundred. What is the market value of the property? - ANSWER$2.22 divided by $100 = 0.0222 Tax Rate $2,340 Annual Taxes divided by 0.0222 Tax Rate = $105,405.41 Assessed Value $105,405.41 divided by 80% = $131,756.76 Market Value