why do you need to know math in real-estate?

Question

real-estate

Answer 1

Calculating square footage of living space, square footage of pavement/building, comparing that to total acreage, price per acre, price per square foot, estimating taxes based on assessment and millage rates, calculating escrow payments, commission due on sales price at given percentages, calculating mortgage payments at different interest rates and terms and loan values....

There's really no end to use of math in real estate. It's pretty much all numbers.

Answer 2

Well, there are a multitude of reasons.

Every day you are, at a minimum, having to figure commission.

You need to know how different financial aspects of the contract affect your client.

You would need to understand the impact of taxes, closing costs and the like on the HUD-1 (closing statement).

Bottom line is, you just could not survive in real estate without knowing math.

Answer 3

It's not just a question of having math skills. It's also an ability to understand the bigger picture of how various financial costs/benefits flow together over time. For that a financial model is sometimes very useful.

I happened to have built a financial model to help people make better buy vs. rent decisions. It has 12+ variables and includes a sensitivity analysis. My model was written about on several popular blogs recently and I've send it to 100+ people (and counting). The feedback has been very positive.

If you'd like a complimentary copy of the model, contact me. You can reach me here: http://silverfernrealty.idxbroker.com/mls/contact.cfm?cid=5615

You can also visit my blog to see more about me here: http://boulderrealty.blogspot.com

You'll need Excel to run the model.

Answer 4

Almost every major real estate decision you'll ever be faced with will involve math in some form or another.

The less competent you are with math, the less able you'll be to make a good decision.

Answer 5

As an appraiser I use all different kind of mathematics from simply percentage increases, decreases, geometry and addition/subtraction/division and multiplication. I also use complex mathematics such as financial calculations (Discounting cash flows) present value, future value, mortgage constant etc. It really depends on what field in real estate you are in.

Answer 6

If it replaced into ever "common" to prevail in any container- sufficient opposition might on the instant meet up so as that it would no longer be common. do no longer fool your self approximately any undertaking in existence. ought to renowned a thank you to determine what the fees are for sellers and purchasers. which supply is larger for them and why and via ways a lot? destiny value of money as destructive to getting it good now. value consistent with squarefeet. quite often common math yet now and back confusing concepts.

Answer 7

Just basic math.

Reading the 'industry standard line' one would think the 'Hot' real estate markets of '05 are just 'returning to normal' or in a 'mild correction'. Truth, as far as San Diego CA is concerned is that in many areas the value drop is already into double digits!
For San Diego real estate, (and many other of the past super heated real estate cities)the major down turn will not occur until mid 2007. Better put on your seatbelts...it's going to be a big drop!
If you are considering investing in real estate or when to sell a
current real estate investment, this real estate blog should be a MUST READ!

Other real estate sites are also noted below:
http://www.brokerforyou.com/brokerforyou


http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm

http://www.san-diego-for-sale-by-owner.com

http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us

http://san-diego-coastal-real-estate.blogspot.com

http://sandiegofsbo.blogspot.com

http://downtown-san-diego-real-estate-views.blogspot.com

http://san-diego-coastal-real-estate.blogspot.com

http://sandiegofsbo.blogspot.com
http://www.brokerforyou.com/san-diego-real-estate-sales.html

http://downtown-san-diego-real-estate-views.blogspot.com

http://www.poway-real-estate.info

http://www.del-mar-real-estate.info

http://www.la-jolla-real-estate.info

http://www.los-angeles-real-estate-brokers.com

http://www.san-jose-real-estate-brokers.com

http://www.orange-county-real-estate-brokers.com

http://www.san-francisco-real-estate-brokers.com

http://www.sacramento-real-estate-broker.com

Answer 8

You don't need to know math... (evil smirk) I'll take care of the math for you.... just sign here...(evil smirk).


SO THIS DOESN"T HAPPEN TO YOU.....