![]() ![]() ![]() The total amount (a) comes from multiplying the principal (p) by one plus the rate of interest (r).įrom my own experience, you also need to familiarize yourself with the math behind things like property taxes and discount points, but if you can handle the multiplication and division involved with simple interest and LTV, then rest assured you can handle those problems easily too. The simple interest formula calculates the total cost of a purchase when accounting for interest. A $100,000 home on which a client receives a $90,000 loan would have a 90% LTV, since the loan covered 90% of the total cost (90,000/100,000 = 0.9, or 90%). To find it, divide the mortgage value by the total value of the home. The loan to value ratio (LTV) assesses how much of the home’s total value a loan covers. Remembering how to do operations like turning a decimal into a percentage (move the decimal to the left two digits, i.e., 0.25 becomes 25%) is a must for passing the real estate exam. I also recommend brushing up on fractions and percentages. You’ll want a good understanding of both linear conversions like feet in a mile (5,280) and area conversions like square feet in an acre (43,560). Your license exam will include some questions on basic measurement conversions. In this article, I’ll go over some of the basic real estate math questions, along with some examples of real estate math problems to help you sharpen the skills you need to become a successful agent. You may find yourself overwhelmed by the large figures and extensive acronyms involved in buying and selling real estate.īut fear not! I am here to help you with real estate math. ![]() If you’re looking to work as a real estate agent, you might feel the same anxiety you felt when a test asked you to explain the Pythagorean theorem. Published by Brian E Adams on JanuJanuary 29, 2021įrom elementary school through high school and beyond – you will need to understand math.Ī lot of us didn’t listen, or perhaps despite our best efforts, just could not wrap our minds around the concepts. Each practice exam question has both an answer and an explanation of the correct answer at the end of the book.Ultimate Guide to Real Estate Math for Agents Once the math formulas have been mastered, there are 110 sample questions for you to practice with. ![]() Immediately after each quiz is an answer key with step-by-step rationales. After each unit is a practice quiz to ensure mastery of each critical formula. Real Estate Math Express can be broken down into 6 major units – Basic Math Primer, Real Property Applications, Valuation Applications, Finance Applications, Investment Applications, and Tax & Closing Applications.Įach unit introduces each major real estate math topic and its corresponding formula(s). No frills, no lengthy explanations….just key formulas, definitions, corresponding examples and practice questions. If you want a truly rapid review resource, Real Estate Math Express is for you. This enables you to truly cram for the math portion of your state’s licensure test, memorize key formulas, and walk into the exam site having all the essential material in your short-term memory! You simply cannot accomplish this using competing lengthy exam prep books. The primary feature of Real Estate Math Express is that it contains all necessary formulas and practice questions in 100+ pages. Real Estate Math Express is a concise, easy-to-study test preparation guide to help real estate students improve their real estate math scores to pass the state licensing test. ![]()
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