Real Estate Mathematics

Question 1

How to calculate commission?

Answer 1

Commission = (percentage of commission in decimals) X sale

Question 2

A buyer has $29,500 available for a down payment, and she must make a 25% down payment. How expensive a home can she purchase?

Answer 2

25,500 / 0.25 = 118, 000

Question 3

What’s the IRV formula?

Answer 3

income = rate × value

rate = income ÷ value

value = income ÷ rate

Question 4

How to calculate tax rate?

Answer 4

a house has been assessed at $90,000 and is taxed at an annual rate of $25 per $1,000 assessed valuation. What is the yearly tax?
$90,000 ÷ $1,000 = 90 (increments of $100)
90 × $25 = $2,250 total annual tax

Question 5

Compute area

Answer 5

Compute the area of the rectangle:

area = length × width

Compute the area of the triangle:

area = ½ (base × height)

Question 6

Compute volume

Answer 6

The formula for computing cubic or rectangular volume is as follows:
volume = length × width × height

volume of a triangular space
volume = ½ (length × height × width)

Question 7

Important measurements

Answer 7

1 yard = 3 feet
1 square yard = 3 ft. × 3 ft. = 9 sq. ft.
1 cubic yard = 3 ft. × 3 ft. × 3 ft. = 27 cu. ft.

Question 8

Commonly used land units and measurements

Answer 8

A rod is 16½ feet.
A chain is 66 feet, or 100 links.
A mile is 5,280 feet.
An acre contains 43,560 square feet.
An acre contains 43,560 square feet.
A section of land is one square mile and contains 640 acres; a quarter section contains 160 acres; a quarter of a quarter section contains 40 acres.
A circle contains 360 degrees; a half segment of a circle contains 180 degrees; a quartersegment of a circle contains 90 degrees. One degree (1°) can be subdivided into 60minutes (60 min), each of which contains 60 seconds (60 sec). One-and-a-half degrees would be written 1°30 min.
A mill is one-tenth of a cent, $0.001. When a property tax is quoted as 23 mills, that means $0.023 per $1 of assessed value, the same rate as $23 per $1,000.
Hectare is equal to 10,000 square meters, or about 2.471acres.
An acre contains 43,560 square feet.

Question 9

What does 1 point mean of mortgage points?

Answer 9

1% of total loan amount.

Question 10

Property tax are expressed as rates. T/F

Answer 10

T

Question 11

A rate is the cost expressed as the amount of cost per unit. T/F

Answer 11

true

Question 12

How to change sq. yards to sq ft?

Answer 12

sq yards x 9

Question 13

Property taxes, transfer taxes, and insurance premiums are usually expressed as ?

Answer 13

Rates

Question 14

6 feet deep = 1/2 foot

Answer 14

T