Name____________________________________________________ Date________________
Realtor Project: You- Be- The Realtor
(Topics: Percent, Commission, Simple Interest)
Directions: You have just been hired as a premier Real Estate Agent. Your first assignment is to
create a listing to be published for a local house for sale. Your listing needs to be attractive in
terms of design, layout, and neatness and include but not limited to the following information:
Part 1: Create a Listing
_______Picture of House and Original Asking Price
_______Address (Street, City, State, and Zip Code)
_______Name of Realtor (your name)
_______Three Descriptive Numerical Phrases (ex: Four bedrooms, …)
Use the website(s): Trulia.com or Zillow.com to find houses for sale (you may only use one of the
pre-approved areas on the back)
If you do not have access to a printer or would like your listing printed in color please email me the
listing by Tuesday, January 29th. Lradway@schools.nyc.gov
Part 2: Listing Information and Work Space:
a. Determine how much commission you would make if the house sold for the original price and
you get paid a 6% commission.
b. The house has been on the market for over 6 months. The sellers decide to decrease the
price of the house by $25,000. Determine the percent decrease of the house. Then
determine your new commission if you sold the house after decrease of the original cost.
c. Determine how much the buyers will need for a down payment if they put down 20%.
d. Determine how much the new buyers will actually pay for the house when you factor in simple
interest (x) for (y) years. (A standard mortgage is generally 30 years, currently interest
rates are 4.375%)
e. Determine how much the buyers will pay for closing costs (2% of housing purchase price)
*Note: Closing costs are fees associated with your home purchase that are paid at the closing of a real estate
transaction. Closing is the point in time when the title of the property (ownership) is transferred from the
seller to the buyer. Closing costs are incurred by either the buyer or seller.
f. Determine the percentage the new buyers will pay in property tax based on the average
property tax for the selected city.
Property Locations
New York
New York City, NY
Avg. Property Tax $4,051 per year
Westchester County, NY
Avg. Property Tax $17,179 per year
Rockland County, NY
Avg. Property Tax $12,924
California
Los Angeles, CA
Avg. Property Tax $12,204.41 per year
Connecticut
Hartford, CT
Avg. Property Tax $7,105 per year
New Jersey
Bergen County
Avg. Property Tax $11,585 per year
Florida
Miami, FL
Avg. Property Tax per year $2,756
Examples of Listings
Exemplar
Address:
14 Ridgeview Avenue
Yonkers, NY 10710
Price: $729,000
Bed: 4
Bathroom: 3 ½
Sq. Ft: 2,460
Brand new construction! Built in 2018
Call Ms. Radway for your
all your real estate needs
Pablo Casal Realty
718-555-5555
Name(s): Ms. Radway
A. Determine how much commission you would make if the house sold for the original price and
you get paid a 6% commission.
Commission
Work Space:
Commission= rate x total sales (original price)
Commission= 6% x $729,000
Commission= .06 x $729,000
Commission= $43,740
The commission on a house that sells for $729, 000 is $43,740.
Answer: __$43, 740__________________
B. The house has been on the market for over 6 months. The sellers decide to decrease the
price of the house by $25,000. Determine the percent decrease of the house. Then
determine your new commission if you sold the house after decrease of the original cost.
Commission after price decrease
Work Space:
Original price-price decrease= new price
Step 1: $729,000-$25,000= $704,000
Step 2: Percent decrease=
N=
amount of decrease
original amount
$25,000
$729,000
N= 0.034
N= 3.4%
The percent decrease is 3.4%
Step 3:
Commission= rate x total sales (new price)
Commission= 6% x $704,000
Commission= .06 x $704,000
Commission= $42,240
The commission on a house that cost $704,000 is $42,240.
Answer: $42, 240
C. Determine how much the buyers will need for a down payment if they put down 20%.
Down Payment
Work Space: Down payment is on the reduced house price from part B.
$704,000 x .20= $140, 800
OR
𝑃𝑎𝑟𝑡
𝑃𝑒𝑟𝑐𝑒𝑛𝑡
=
𝑊ℎ𝑜𝑙𝑒
100
𝑁
20
=
$704,000 100
100𝑁
14,080,000
=
100
100
N= $140, 800
The down payment required is $140, 800.
Answer: $140, 800
D. Determine how much the new buyers will actually pay for the house when you factor in simple
interest for 30 years.
Mortgage (Simple Interest)
Work Space:
Part 1:
Housing price-down payment= principal
704, 000- $140, 800= $563, 200
Part 2:
Simple Interest
I=prt
I= $563,200 x 4.375% x 30
I= $563,200 x .04375 x 30
I= $24, 640 x 30
I= $739, 200
Part 3:
Principal (original price) + Interest= Total cost of home
$563, 200 + $739,200= $1,302,400
The total price for the home after 30 years is $1,302,400.
Answer: 1,302,400 __
E. Determine how much the buyers will pay for closing costs (2% of housing purchase price)
Closing Costs
Work Space: Purchase price is the amount after the down payment (see part D)
Purchase price (original price) x closing cost percent
$563, 200 x 2 %
$563, 200 x .02
=$11, 264
The closing costs are $11, 264
Answer: ________$11, 264__
F. Determine the percentage the new buyers will pay in property tax based on the average
property tax for the selected city.
Property Tax Rate
Work Space:
Step 1: Identify avg. property tax for area.
Westchester Avg. Property Tax $17,179
Step 2: Determine the percent tax rate that your clients will pay.
(*Whole= Original purchase price/value (before the down payment) (see part B)
𝑃𝑎𝑟𝑡
𝑊ℎ𝑜𝑙𝑒
=
𝑃𝑒𝑟𝑐𝑒𝑛𝑡
100
$17, 179
𝑁
=
$704,000 100
$704,000𝑁
$1,717,900
=
$704,000
$704,000
N= 2.44%
Answer: 2.44%
Name: ________________________________
___________
Class:
Client Info Sheet
Thank you for choosing ______________________ realty for your
housing needs. Below you will find a summary of the fees and for
your house purchase at
____________________________________________.
Commission owed to realtor after
price decrease
$42,240
Down Payment
$140, 800
Mortgage
$1,302, 400
Closing Costs
Property Tax Rate
$11, 264
2.44%
Name(s): _______________________________________________________________ Class: ____________________
A. Determine how much commission you would make if the house sold for the original price and
you get paid a 6% commission.
Commission
Work Space:
Answer: ____________________
B. The house has been on the market for over 6 months. The sellers decide to decrease the
price of the house by $25,000. Determine the percent decrease of the house. Then
determine your new commission if you sold the house after decrease of the original cost.
Commission after price decrease
Work Space:
Answer: ____________________
C. Determine how much the buyers will need for a down payment if they put down 20%.
Down Payment
Work Space:
Answer: ____________________
D. Determine how much the new buyers will actually pay for the house when you factor in simple
interest for 30 years.
Mortgage (Simple Interest)
Work Space:
Answer: ____________________
E. Determine how much the buyers will pay for closing costs (2% of housing purchase price)
Closing Costs
Work Space:
Answer: ____________________
F. Determine the percentage the new buyers will pay in property tax based on the average
property tax for the selected city.
Property Tax Rate
Work Space:
Answer: ____________________
Name: __________________________
Class: ___________
Client Info Sheet
Thank you for choosing ______________________ realty for your
housing needs. Below you will find a summary of the fees and for your
house purchase at ____________________________________.
Commission owed to realtor after
price decrease
Down Payment
Mortgage
Closing Costs
Property Tax Rate