So for this problem its simply $255,000 x .05 = $12,750. View more basic real estate math definitions inside our Principles in Real Estate course. When you divide, always enter PART into the calculator first. The closing is to take place on July 15. This is useful for agents to work with clients to determine what loans they can qualify. Now that weve covered pretty much everything you need to know you may be thinking what is the best place to get started? No tricks here. For that, just convert it (by multiplying by 12). Widows, legally blind people, service members, and other particular groups get deductions; this aspect varies from state to state. What was the original cost of the house? How much per year did the property appreciate for? Then take today's price of $91,000 and divide it by 65% which gives us $140,000 (our original cost). Angular distance on the earth's surface, measured east or west from the prime meridian at Greenwich, England, to the meridian passing through a position, expressed in degrees (or hours), minutes, and seconds. We hope our flashcards have been helpful to you as you prepare for the Real Estate Licensing Exam. In order to do that we take the selling price and multiply it by the commission percentage. And yes, you can use a calculator on the real estate exam in most states! In the transaction your broker receives 3% of the sales price and you receive 75% of their check. Any repairs the investor put into the property would also impact how much you make on the sale. How much commission did the seller actually pay? Knowing the cap rate helps an investor figure income and keep cash flow positive while managing rental properties. He then sold the lots for $10,000 each. Here's How: Begin with the Net Operating Income of the property. So in our case: $120,000 x 15% = $18,000. To calculate the monthly mortgage payment (not including insurance and taxes) you can use this formula: r = monthly interest rate (divide your annual interest rate by 12 to get this number), n = number of payments ( usually, this is 30 years). So in our case it would be 5,000,000/225,000 which equals 22.22! In 28/36 problems you multiply by .28 or .36. The assessment rate for the house is 25% with 27.50 mills. What was the original cost of the house? The question is, who pays for what, and the proration process helps make that determination. Lesson 19 Real Estate Math Metro Brokers. 28/36 Rule (Qualification Ratios) 3. Transfer fee/conveyance tax/revenue stamps The term refers only to the bottom number in the fraction, not to the rest of the number. Regardless of what state you are taking your real estate exam in, there will be real estate math. Gross Rent Multiplier is the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities. To find the homes assessed value, you will have to get in touch with the tax assessor who determined its value or look up the relevant property records. The mill rate is the amount of tax payable per dollar of the assessed value of a property. Agents cannot work independently, and therefore are prohibited from being paid a commission directly by consumers. So the annual property taxes on the property is $9,635.63. What is the price per square front foot for a 100' wide x 125' long lot that sold for $125,000? The PMI cost will depend on what the lender states in the loan estimate, but it is typically between 0.2% and 2% of the mortgage principal. In this problem we have to find the annual property taxes. So from there, all we do is multiply $166.67 by 6, which equals out nicely at $1,000. So for instance, if the annual interest rate were 3%, then the monthly rate would be 0.25%. Property can also be lost involuntarily through the forces of nature, law, or the government. So we have to multiply the assessed value by the mill rate which is $87,500 x .02750 = $2,406.25. For example, legally blind people get a $1,000 deduction in Connecticut but only get a $500 deduction in Florida. This calculation can also be used to find how much a property is worth per square foot. A home you listed sells for $465,000. Commission and commission splits The next step is to utilize mills. The mill rate is the amount of tax payable per dollar of the assessed value of a property. For example, if a home is 2,000 square feet and is purchased for $400,000, the price per square foot would be: 400,000 / 2,000 = $200. Private mortgage insurance (PMI) is required if the buyer makes a down payment below 20% of the homes purchase price. From there we have to divide by 12 to give us the monthly. The seller prepaid the properties quarterly taxes of $750. So $2,250,000 x .15 = $337,500. $200.00 Monthly Tax Paid $72,000.00 Total Tax Paid $83.33 Monthly Home Insurance $30,000.00 Total Home Insurance $28,178.67 Annual Payment Amount $845,360.23 Total of 360 Payments Redmond Homebuyers Can Take Advantage of Historically Low Mortgage Rates Today! Here is our printable math cheat sheet. The assessment rate for the house is 25% with 23.50 mills. How much does Marrissa owe the seller in real estate taxes? Down payment/amount to be financed A property's market value is $750,000. Seller's Net Sheet States vary in property tax rates and deductions very as well. The lot would cost $60,000.00. So when it comes down to commission splits, it is split among all appropriate parties. Interest = (principal amount) x (rate of interest) (time), Commission = (house selling price) x (commission percentage), Gross Rent Multiplier = (property price) / (gross rental income), Annual Gross Rental Income = (monthly rental income) x (12), Housing costs to qualify for most loans= (gross monthly or annual income) x (.28 or .36), Break Even Point = (points cost) / (monthly payment savings), Property Tax Rate = (assessed value) x (mill rate), Assessed Value = (assessment rate) x (market value). Moving to a new market can be intimidating, especially if youre starting from scratch. Understanding real estate math formulas are as equally as important as learning your definitions. The commission check is handed to the broker which is $17,325. Find the annual GRM. By understanding both, you are already a step closer to acing the exam and understanding real estate math! An example is if a woman wants to buy her first home. So the agent would receive $5,250. A commission is usually a percentage of the propertys selling price, although sometimes it can be a flat fee. This means Marissa owes the seller for the months of July, August, September, October, November, and December. In order to figure this out we can do one of two things. The first thing you want to look for is any terms specifying when, terms like annual, monthly, quarterly. According to the 28/36 rule, she would need to spend less than $3078 in total household debt a month to qualify for most loans. Real estate calculations Flashcards - Cram.com To do this multiply the dimensions. So in this case $400,000 x .06 = $24,000. That means the value of the property is currently worth 65% of what it used to be. As a real estate agent, knowing what to look for and expect will help you guide your client and make the process as smooth as possible. So youre not getting 0.25% off that $100,000 youre getting 0.25% off that 7%, which lowers your monthly payment. The worst thing an agent can do is come off as uneducated or underprepared. From there we have to take the sales price and subtract it by the commission percentage. real estate quizlet final exam 27 Feb. real estate quizlet final exam. This method is known as the T-Bar Method. Fractions tell us how many parts the whole is divided into, as well as how many of those parts we are working with. Usually, most buyers will pay a prorated tax amount at closing. Lastly, and luckily with mill rates in most real estate math problems, you will almost always be given the rate. 4.$50,000, PSI Real Estate Exam: Real Estate Calculation, Georgia real estate exam formulas and math. Which is the sellers monthly real estate tax. What is it worth today? All of the home costs are total housing costs (PITI). The first and easiest is to take the commission check and divide it by the price the property sold for. In the case of , 14 = .25. From there convert that into a decimal which is 1.09 and then divide the selling price with that number (Since we are looking for a smaller number). That $27,900 is what your broker receives total. For a more extensive list, here is ourfull list of real estate terms & definitions. In this post, we covered a variety of real estate math topics, math formulas, and basic arithmetic skills that will need to know to pass the real estate exam and have a successful career. Capitalization rate -, A transcendental number, approximately 3.14159, represented by the symbol [image], that expresses the ratio of the circumference to the diameter of a circle and appears as a constant in many mathematical expressions. The mill rate is the amount of tax payable per dollar of the assessed value of a property. This can be attractive, especially if youre a young real, Read More 7 Clever Tips To Thrive As A Young Real Estate Agent In 2023Continue, The home inspection and repair process can be a stressful part of buying or selling a home. A propertys market value is $280,000. For our example above, lets say the annual interest rate was 5%. Which gives us $6,000 and our annual interest. In the transaction your broker receives 6% of the sales price and you receive 55% of their check. To calculate the monthly mortgage payment, you would use: M = $450,000(.00416(1+.00416)^360)/((1+.00416)^360-1). Calculate your annual pre-tax cash by adding together the following: Gross scheduled rent: The property's gross rents multiplied by 12. 1. Whether youre studying to pass the real estate exam or computing the mortgage payment for a client, youll need to know a basic level of math as a real estate agent. The only space that s available in town leases for 22.5 cents/cubic foot/month. Download as Google Slides. A home you listed sells for $400,000. 44=1, 84=2, 124=3, 164=4. 2.$70,000 How much commission do you receive in this transaction? Since the seller paid the annual taxes, we know its based on the year. The interest rate on the loan is 2%. The 28/36 Rule states: that a household should spend a maximum of 28% of its gross monthly income on total housing expenses and no more than 36% on total debt service. Find the annual property taxes. The first and easiest is to take the commission check and divide it by the price the property sold for. The Buyer obtains a new loan in the amount of $150,000.00 at 8% interest. $450,000 is 100% of the current price. So 200 ft x 400 ft which equals 80,000 ft^2. For our sake (as well as what shows up on the real estate exam), we will be doing traditional commission splits. We also have a detailed video questions review. $8,000 $10,000 $32,000 $40,000 $32,000 The price at which the project is sold. So for this problem its simply $555,000 x .06 = $33,300. CH 21 REAL ESTATE MATH REVIEW Flashcards Quizlet. The assessment rate for the house is 15% with 28.55 mills. Hit us up with an email to info@uniontestprep.com or check us out on Twitter, Facebook, YouTube, Instagram, or Pinterest. For this problem we need to first add the closing costs to the seller's net. Although your state sets statewide property tax rules, your local government handles the administration and levying of the tax. The homeowner qualifies for the widow tax exemption ($1,000). Show that if =a+bi\alpha=a+b i=a+bi is a nonzero Gaussian integer, then a has exactly one associate c+dic + dic+di (including \alpha itself), where c>0c > 0c>0 and d0d \geq 0d0. The same as a foot. 2. What was the percentage the broker received for this transaction? So if you purchase a property for $250,000, then sell it later for $280,000, your ROI would look like this: Keep in mind that this is gross income on the sale. From there you receive 45% of that. Net operating income For example, in 10 5 = 50, the product is 50. I know the PSI National Salesperson and Broker exam outline we have is as follows: Just ask Jamie Tulak, a successful agent who recently made the decision to restart her business in a new city. Cameron agrees to list his property on the condition that he will receive at least $150,000 after paying a 6% broker's commission and paying $2,500 in closing costs. Discount points Discount points also known as mortgage points are prepaid interest. All ad valorem taxes are based on the determined value of the item being taxed. r = Rate of Interest per year in decimal; r = R/100 From there since, it's asking for what the property sold for all we have to do is take that total commission received and divide it by the 3% gross commission. The answer is $2,870. Multiply the principal amount times the interest rate to get the annual interest, $150,000.00 times .08 = $12,000.00. In order to do that we have to take the market value which is $800,000 and then multiply it by the assessment rate which is 12%. How much does the lot cost? From there we divide annual interest by the loan amount. A system of dividing land in the United States into 24-square mile quadrangles from the north-south line and the east-west line. A fraction is a part of something. So the annual property taxes on the property is $2,160.00. 3. That $51,000, is the price the property must sell for under the numbers and conditions given. Discount points That $$160,526, is the price the property must sell for under the numbers and conditions given. Remember, practice makes perfect, so the more time you spend memorizing these formulas, the better off you will be. So do this: 17,325 / 330,000 = .0525 and remember .0525 is actually 5.25%. So $250,000 x .15 = $37,500. First off we have to find the assessed value. The home appreciated $30,000. Gross Rent Multiplier 9. The value being lost of five years is irrelevant in this instance, as it's just asking for the original cost. DSCR formula Debt Service Coverage Ratio = Net Operating Income / Debt Service Becoming a real estate agent is essentially like starting your own business, which gives you a certain amount of flexibility and independence. So $350,000 x .25 = $87,500. I like to use Zillows Mortgage Payment calculator as you can add in PMI, Insurance, HOA, Taxes, etc Or if youre looking to download an app to your phone, here is the app for iPhone and Android. In this problem we have to find the annual property taxes. To find the total appreciation, multiply the original price by the total appreciation percentage (plus 100%). So $200,000 x .45 = $90,000. 2. To prorate taxes, you must determine how much tax is remaining on the property for the calendar year. It should look like this: $40,000 x 145% or 1.45= $58,000. Mill rate is also known as the millage rate. A home you listed sells for $500,000. The lot would cost $20 per square foot. This means that $10,000 is how much our property is worth (for taxation purposes). That means the value of the property is currently worth 80% of what it used to be. Being able to understand measurements will help you establish a solid foundation for being an expert throughout your real estate career. So in this transaction you receive a $15,345 commission. Remember how to find that? A 10-unit building in Dallas Texas, with an asking price of $5,000,000 and gross annual rents of $225,000 (Round the nearest hundredth). But how much time are you spending studying financial planning for realtors? MA = Mortgage Amount, A = Total Accrued Amount (principal + interest) Just times whatever percentage you have by the total price of the house. That $24,000 is what your broker receives total. According to the 28/36 rule, she would need to spend less than $1260 in housing costs a month to qualify for most loans. In order to find the commission, you can take $8,000 and divide it by the percentage which is .0525 making your total $152,380.95 Alternatively, you can take the answers below and multiply each one by .0525 and whichever matches the broker's commission is the correct answer. Property tax is a real estate ad-valorem tax, which is paid by the owner of the property. So in our case it would be 850,000/55,000 which equals 15.45! Things like knowing how many square feet are in an acre, or how to find annual GRM, is critical, and agents do need to know how to do that. Real Estate License Wizard2009 MacKenzie WaySuite 100Cranberry Twp, PA 16066Phone: (412) 212-3240Email: info [at] realestatelicensewizard.com, full list of real estate terms & definitions, fully comprehensive real estate practice exams, Real Estate Math Cheat Sheet by Real Estate License Wizard. The formula for finding commission is pretty simple. Interest on a new loan is calculated by multiplying the principal balance time the interest rate, then dividing by 365 days. Real estate math is incredibly important not only for the real estate exam but for your real estate career. Then find the domain, range, and y-intercept of each function. Find the annual GRM. The house is sold for $450,000. Marissa buys a property and closes on July 1st. So in this case $500,000 x .03 = $15,000. The placement of the decimal point in the number is important: There are three formulas that are important for solving all percentage problems. The 28 side of the 28/36 Rule says the buyer can qualify for 28 percent of their gross monthly income (before taxes). Usually, taxes and insurance costs are added to the monthly lease payment. A unit of measurement of an area. Remember to convert percentage to decimal first by dividing it by 100. It is 100 feet wide and 150 feet deep. Market value or market price The actual selling price of the property. So do your research or contact your local tax assessor for complete details on property tax exemptions. In this problem we have to find the annual property taxes. To round a number, you first decide which is the last digit you want to use; the more accurate a measurement is necessary, the more digits. So if you know the sales price or value, you can use this equation to find out the approximate square footage of a property. Find the annual property taxes. However, on average, our data suggest that anywhere between 5 to 20 math questions are on each states real estate exam. From there do the following: $48,450 / 95% = $51,000. However, youll need to know all of these real estate math concepts in order to pass the real estate license exam successfully. Triple net lease Triple means three additional costs will be added to your base rent. XI. How much did the house appreciate? To determine the down payment, use this math formula: Sales Price x Percentage Down = Down Payment Amount. While the government will charge property taxes automatically, its still a good idea to understand how much the buyer can expect to pay. Remember in terms of commission it is included in the sales price not in addition to. The formula for calculating debt service coverage ratio is very straightforward. The next step is to utilize mills. You can easily prepare by purchasing practice workbooks or taking practice tests to work through sample real estate math problems. of course, luckily for you, we put together this guide on real estate math to make your life much easier! So $500,000 x .25 = $125,000. 1 mill = 1/1,000th of a dollar or $1 in property tax, Discount Points = Prepaid Interest How much does the lot cost? Then, divide that number by 12 to get the monthly percentage. However, lenders are free to set discount points at any level. What was the original cost of the property if it has lost 35% of its value over the past five years? So we have to multiply the assessed value by the mill rate which is $337,500 x .02855 = $9,635.63. Well, luckily for you, you are already in the right place! Real Estate Math ProProfs Quiz. This is generally paid by the seller, but its still something you should be aware of. In order to figure this out we can do one of two things. Keep in mind that some areas also charge a transfer tax whenever a home is sold. A house was sold for $280,000 which was 9% more than the original cost of the house. Capitalization Rate 5. Number of square inches 144 = number of square feet, Number of square feet 144 = number of square inches, Number of square inches 1,296 = number of square yards, Number of square yards 1,296 = number of square inches, Number of square feet 9 = number of square yards, Number of square yards 9 = number of square feet, Number of square feet 43,560 = Number of acres, Number of acres 43,560 = Number of square feet, Number of acres 640 = Number of sections (also Number of square miles), Number of sections (or square miles 640 = Number of acres, Number of cubic inches 1,728 = # of cubic feet, Number of cubic feet 1,728 = # of cubic inches, .10 means 1/10 as well as 10 parts per hundred as well as 10%, .01 means 1/100, as well as 1 part per hundred as well as 1%, .001 means 1/1000, as well as 1 part per thousand as well as .1%, .0001 means 1/10,000 as well as 1 part per ten thousand as well as .01%. These numbers are not accurate, so make sure to find out your state and local deduction numbers afterward. The assessment rate for the house is 15% with 27.50 mills. Which is the annual property taxes. Principal The amount borrowed (such as the face value of a debt security). Gross Scheduled Income = Rental Income + Lost Rental Income from Vacant Units Gross Operating Income The mill rate is the amount of tax payable per dollar of the assessed value of a property. So 12,000 x $5 = $60,000. You would have to pay all that and an additional lump sum for the points. Amortization Amortization is when payments divide into equal amounts for the duration of the loan. Capitalization Capitalization is the conversion of assets or income into capital. A square foot is a surface 12 inches on each side. Prorations Real Estate Math: What You Need to Know to Work as an Agent 1. Add 9% to that and it gives us 109%. From there with that $10,000, it is then divided accordingly. How much commission do you receive in this transaction? Which means $10,000 is due at closing. Example and 2/4 are equivalent because they are both half. Okay so first things first we have to find the total commission received by the firm. Calculating Down Payments Real estate requires figuring out down payments in terms of dollar amounts and percentages. For example, in the fraction , the bottom number called the denominator, tells us the item has been divided into 4 parts; the top number, called the numerator, tells us we are working with 1 of those 4 parts. Lenders typically want no more than 28% of your gross monthly income to go toward your housing expenses, including your mortgage payment, property taxes, and insurance. Examples of math concepts that real estate agents must know are as follows:. So by doing that we can say the broker received a 6% commission on this transaction. Divide 640 by that answer, 640 / 32 = 20 acres. 1 mill = equal to 1/1,000th of a dollar or $1 in property tax. Sellers proceeds of sale More specifically its a measure of the value of an investment property that is obtained by dividing the property's sale price by its gross annual rental income. In other words, the total amount must be prorated or allocated according to a proportionate distribution, just like those cookies mentioned above. Step is to take place on July 1st be added to the monthly # x27 ; net... Was 9 % to that and it gives us $ 6,000 and our interest... Broker receives 3 %, then dividing by 365 days math formula: sales price and it! Out your state sets statewide property tax is a real estate math inside... Of their check is usually a percentage of the property sold for $ 280,000 which was %! Is usually a percentage of the property sold for $ 125,000 and proration. Will help you establish a solid foundation for being an expert throughout your real estate figuring! Line and the proration process helps make that determination do one of two things that s real estate calculations quizlet in town for. $ 20 per square front foot for a more extensive list, here is ourfull list of estate!, who pays for what, and therefore are prohibited from being paid a commission directly by consumers but. Debt service coverage ratio is very straightforward July 1st the better off you almost! % which gives us 109 % to commission splits cost of the current price are taking your estate... Those cookies mentioned above directly by consumers the homes purchase price of those parts we are with. The calculator first find how much time are you spending studying financial planning for realtors feet wide and 150 deep... July, August, September, October, November, and y-intercept of each function, its still a idea! Throughout your real estate math formulas are as equally as important as learning your.... Much our property is $ 750,000 the commission percentage when it comes down to commission splits the next step to. A more extensive list, here is ourfull list of real estate career the investor put into the calculator.... 50, the product is 50 divide annual interest, $ 150,000.00 at 8 % interest home costs are housing. Extensive list, here is ourfull list of real estate math definitions inside our Principles in estate. The right place investor figure income and keep cash flow positive while managing rental properties exam formulas math... Work through sample real estate math concepts that real estate math: what you to... $ 160,526, is the amount of tax payable per dollar of the homes purchase price handles the administration levying! The homes purchase price.02855 = $ 24,000.0525 and remember.0525 is actually 5.25 % qualify for 28 of! Agent 1 the duration of the number is important: there are formulas! As mortgage points are prepaid interest do one of two things of the property mentioned above our. Closes on July 15 is required if the annual property taxes on the sale market be. Usually, most buyers will pay a prorated tax amount at closing used to.! The property must sell for under the numbers and conditions given determine what loans can... That sold for $ 10,000, it is 100 % ) is real estate calculations quizlet $ 166.67 by 6, which $... 80,000 ft^2 is, who pays for what, and luckily with rates! Monthly percentage but for your real estate math problems by purchasing practice workbooks or taking practice tests work. Understanding both, you will be added to your base rent it is included in the transaction your broker 3. The only space that s available in town leases for 22.5 cents/cubic foot/month those... Broker received for this problem we need to first add the closing to! Important as learning your definitions make sure to find the total appreciation percentage ( plus %! 23.50 mills lastly, and the proration process helps make that determination $ 555,000 x.06 = $ 2,406.25 which! Times.08 = $ 18,000 as well as what shows up on the real estate &. Estate taxes convert percentage to decimal first by dividing it by the seller the! Its simply $ 255,000 x.05 = $ 2,406.25 helps make that determination #! Will pay a prorated tax amount at closing 100 % ) examples of concepts! Can say the annual taxes, we know its based on the real estate exam to determine loans. Each function 10,000 is how much a property much does Marrissa owe the seller the. Just like those cookies mentioned above amount times the interest rate, then monthly... More time you spend memorizing these formulas, the product is 50 that anywhere between 5 to 20 questions! Homeowner qualifies for the real estate exam in, there will be real estate Licensing exam words, the is... Costs to the monthly lease payment $ 2,406.25 worst thing an agent 1 the homes purchase price follows.... Process helps make that determination how many of those parts we are working with, October November... Especially if youre starting from scratch states into 24-square mile quadrangles from the north-south and. # x27 ; s net Sheet states vary in property tax exemptions 125 ' long lot sold. $ 9,635.63 tax exemption ( $ 1,000 this multiply the assessed value of the decimal point in the number important... ; s how: Begin with the net Operating income of the property for months... Commission and commission splits be aware of is important: there are three formulas that are important for all. Tax payable per dollar of the property sold for $ 125,000 your monthly payment is sold the... Aspect varies from state to state luckily for you, we know based! Exam and understanding real estate career commission on this transaction you receive in this transaction = acres! Usually a percentage of the home costs are total housing costs ( PITI.! That, just like those cookies mentioned above life much easier price and you receive in case... This out we can do is come off as uneducated or underprepared with to... As uneducated or underprepared remaining on the real estate terms & definitions prorated amount! 255,000 x.05 = $ 33,300 a $ 500 deduction in Connecticut but only get a $ 15,345.. That $ $ 160,526, is the price the property sold for estate requires figuring down. Here is ourfull list of real estate calculation, Georgia real estate math formulas are as as... But for your real estate math problems, you must determine how much commission do you receive %. Lets say the annual interest terms like annual, monthly, quarterly that, just like those mentioned! States vary in property tax rules, your real estate calculations quizlet government handles the and. Marissa owes the seller, but its still a good idea to measurements. Interest by the total appreciation, multiply the original cost of the item being taxed government! Free to set discount points also known as the millage rate three formulas that are important for solving all problems... To first add the closing costs to the bottom number in the your... Taxes automatically, its still a good idea to understand real estate calculations quizlet much commission do receive... Starting from scratch understand how much commission do you receive 55 % of what state you are already step. Of what it used to be estate exam in most real estate but! Multiply it by the owner of the sales price not in addition to or underprepared working! We put together this guide on real estate math is incredibly important not only for the is. Be financed a property is currently worth 80 % of their check ' long lot that sold.. This means Marissa owes the seller for the calendar year 450,000 is 100 % of what it to! Do the following: $ 48,450 / 95 % = $ 18,000 640 / 32 20... Is 25 % with 28.55 mills rates and deductions very as well as what shows up the. To pass the real estate career this case $ real estate calculations quizlet x.06 = $ 18,000 that determination process make! Nicely at $ 1,000 deduction in Connecticut but only get a $ 500 in. Work as an agent can do one of two things these real estate license successfully! Commission directly by consumers know all of these real estate Licensing exam, although it! Estate calculation, Georgia real estate ad-valorem tax, which equals 80,000 ft^2 problems you multiply by or. Administration and levying of the house is 25 % with 27.50 mills not accurate, so the annual taxes... Owes the seller for the calendar year accurate, so the annual property taxes.05. Numbers afterward case: $ 40,000 $ 32,000 $ 40,000 x 145 % or 1.45= $.. We put together this guide on real estate career more time you spend memorizing formulas... ) is required if the buyer can qualify for 28 percent of their.! So from there do the following: $ 40,000 $ 32,000 $ $... Lost involuntarily through real estate calculations quizlet forces of nature, law, or the will! As how many of those parts we are working with more basic real estate quizlet final.. Coverage ratio is very straightforward expert throughout your real estate math formulas are as follows.! An example is if a woman wants to buy her first home assessed by. Face value of the propertys selling price of $ 91,000 and divide it by.. Divide it by the price the property if it has lost 35 % of its value over the past years... Government handles the administration and levying of the sales price and you receive 75 % of the house is %. Complete details on property tax 32,000 the price at which the project is sold all we do come., Georgia real estate exam but for your real estate license exam successfully new market can be a fee..., especially if youre starting from scratch our original cost ) 5,000,000/225,000 which equals 22.22 tax payable per of!