Scary math and passing your real estate exam

A lot of students fear math and think it'll sink them during the real estate exam. The good news is that even if you missed all of the math questions you can still pass. However, learning the math concepts do not extend past basic math and is easy to learn.




Even if you haven't had to use your brain to do simple calculations in a while you need not worry. Any good real estate license school will cover the concepts in easy to understand ways so that you will ace this section of the test.

Here are some of the topics that a good school will cover:

Real estate calculations

1. Basic math concepts 

   a. Area
   b. Loan-to-value ratios
   c. Discount points
   d. Equity
   e. Down payment/amount to be financed

2. Calculations for transactions, including mortgage calculations

3. Property tax calculations

4. Prorations (utilities, rent, property taxes, insurance, etc.)
   a. Commission and commission splits
   b. Seller’s proceeds of sale
   c. Transfer tax/conveyance tax/revenue stamps
   d. Amortization tables
   e. Interest rates
   f. Interest amounts
   g. Monthly installment payments
   h. Buyer qualification ratios

5. Calculations for valuation
   a. Competitive/comparative market analyses (CMA)
   b. Net operating income
   c. Depreciation
   d. Capitalization rate
   e. Gross rent and gross income multipliers

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