Ch 16: Common Real Estate Calculations

About This Chapter

Optimize your knowledge of common real estate calculations, including loan-to-value ratio, transfer fees, closing costs, and more. If you are preparing for a test or class discussion, these lessons and quizzes can give you more confidence by testing your knowledge of the concepts covered in advance.

Common Real Estate Calculations - Chapter Summary

As you review lessons on common real estate calculations, you'll get a deeper understanding of topics like revenue stamps and transfer fees. Expert instructors also explain loan prepayment penalties and how to calculate home equity. By the end of the chapter, you should be ready to:

  • Recall the formula for calculating the loan-to-value ratio
  • Discuss the pros and cons of discount points
  • Explain how to use home equity as a down payment
  • Detail how conveyance tax is calculated
  • Relate how commissions are divided between brokers and real estate agents
  • Describe how to calculate closing costs
  • Recount formulas used by investors to analyze investments

Our educators aim to ensure you comprehend common real estate calculations in a short amount of time. A brief quiz is available for each lesson to test your knowledge of the topics covered. You can also print the lesson quizzes and use them as study worksheets.

7 Lessons in Chapter 16: Common Real Estate Calculations
Test your knowledge with a 30-question chapter practice test
Loan-to-Value Ratio: Definition & Formula

1. Loan-to-Value Ratio: Definition & Formula

Understanding the loan-to-value ratio can help your clients understand how banks will evaluate their loan and one factor that will affect their credit rating.

Loan Financing Costs: Discount Points, Prepayment Penalties & Fees

2. Loan Financing Costs: Discount Points, Prepayment Penalties & Fees

Real estate professionals need to know the expenses involved in getting a loan to purchase a home. In this lesson, you will learn about the typical costs, fees, and calculations associated with obtaining a mortgage.

How to Calculate Home Equity & Down Payments

3. How to Calculate Home Equity & Down Payments

Home equity and down payments are two aspects of getting funding for your clients' new home. By understanding these terms, you can help your clients use their funds and maximize their money for their new home.

Transfer Fees, Conveyance Tax & Revenue Stamps

4. Transfer Fees, Conveyance Tax & Revenue Stamps

Location can affect how much a buyer pays for a property, but it can also affect the fees involved. This lesson will go over transfer fees, conveyance taxes and revenue stamps and explain how they are calculated.

How to Calculate Real Estate Commission

5. How to Calculate Real Estate Commission

In this lesson, we will define real estate commissions. We will then explain how the commission is divided among the real estate agents and their brokers at the conclusion of a real estate transaction.

Closing Costs: Calculations & Practice

6. Closing Costs: Calculations & Practice

There is an old wise saying: 'There are two sides to every story'. In real estate, the transaction is the story; one side belongs to the buyer, the other side to the seller. In this lesson, you will learn how both sides complete the story of a transaction.

Net Operating Income & Gross Rent Multiplier: Definition & Calculation

7. Net Operating Income & Gross Rent Multiplier: Definition & Calculation

Net operating income and gross rent multiplier calculations can help a real estate investor quickly evaluate prospective purchases and measure performance. We will also look at some of the other formulas investors use for their investment analysis.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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