If you are a student and willing to be a real estate agent then it is important to learn all the basics, in and out of the profession. Some important things to learn for being a professional real estate agent are basic real estate law, the ins and outs of mortgages and liens, zoning regulations, sales techniques, municipal relations, marketing and a latest terminology to cover these areas.
Learn Basic Math Equivalences
Apart from all the above given points it is important to have detailed knowledge regarding real estate math. If you are also having a question that how to master real estate math then we want to tell you that you need to brush up your basic math operations. The basic math operations are very important as they are used in applied to real estate Situations.
If you want to check out the size of a property then the basic terms and formulas of maths will be used. While determining the size of a property you must know that the whole area is the length X width of property point the whole figure will be expressed in square units. Along with the size of the property front page also plays an important role. The distance property is having along with the road is known as frontage. For determining the basic figures you must memorize some basic conversions like 1 acre is equal to 43,560 square feet and 1 yard is equals to 3 feet and 1 square yard is equals to 9 square feet.
You should know the basic formulas of applying interest
Furthermore you must also know how to apply basic formulas to calculate interest. If you are calculating Mortgage Loan then must remember that all the mortgage loans charge interest. In order to calculate the interest it is important to have proper understanding of mathematics. To calculate the interest charges you need to know the amount borrowed, the rate at which the amount was borrowed and also that term. Term means length of time of the loan. Thereafter you need to apply the formula that is: I=PRT.
Percentage and Decimals must be at your tips
Be familiar with Percentages and Decimals. If you want to calculate commissions, pro-rations, taxes and interest then it is important to know the basic percentage calculations. 01 percent means 01 part of a hundred. Similarly, 9 percent is equals to 9 parts per hundred, so when we calculate it in decimal it will be 0.09. In mathematics, the interest for one year will be calculated by multiplying the principal to 0.09.
If Sam is having a profit of 04 percent commission by selling a house at a price of $200,000, then his commission will be 0.04*$200,000 i.e. $8000. Often costs have to prorate between customer and vendor at closing. In case if the person selling his property has already paid the condo-fee on annual basis and the property is sold just after 02 months then the person is due 80 percent refund (10/12) of the annual amount he has paid.
For calculating, you need to multiply the amount (fees) with 0.75. This method can also be used in calculating taxes. In case of having 02 percent Tax on Real Estate Transfer, the amount will be calculated by multiplying selling price with the tax percentage i.e. 0.02.
In order to solve any real estate problems, it is important to be logical and careful. If you are having real state problem with appraisals and depreciations then all you need to do is applying the basic calculations with logic. Usual multiplication, fractions, decimals and percentages and other mathematical equations have all the solutions of Real Estate Math issues. If any problem is big then just break it in smaller parts and solve each part accordingly. The final result will be accurate. This method will help you in being Master Real Estate Math.