Easily Insert Calculations from the Real Estate Sales Contract

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How to Insert Calculations from the Real Estate Sales Contract

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- Hey everyone, my name is Paul Vojchehoske and welcome to the Real Estate Classroom YouTube channel. In todays video, were gonna discuss a real estate math problem or a real estate math calculation that you have to know for your real estate exam. Its called seller proceeds from the sale and thats what Im gonna show you how to calculate in todays video, so lets get to it. (upbeat music) So in todays real estate math video, Im gonna show you how to calculate seller proceeds. It is a function that you have to know as a real estate professional when youre listing properties, but its also something you have to know for your real estate exam especially if youre taking the PSI exam. If youre taking the PSI exam, I guarantee you theres a high probability that youre gonna have a question or two on calculating seller proceeds. So first of all, what is a seller proceed? It is essentially just the money that the sellers gonna get from the sale of their home, hopefully. Its really

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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What is the T bar method?

2:09 10:04 The horizontal bar indicates that we divide. The vertical bar indicates we multiply. What we haveMoreThe horizontal bar indicates that we divide. The vertical bar indicates we multiply. What we have here is a tool a visual algebra tool after all most real estate math is just basic algebra.

How do you calculate net sales price in real estate?

Net Sales Price is defined as Gross Sales prices minus any sellers subsidy. What is a Seller Subsidy? A seller subsidy is defined as any closing costs paid by the seller on behalf of the buyer.

What are real estate calculations?

Using the formula: GRM = Property Price/Gross Annual Rental Income (where GRM is the ratio of the original real estate investment price to its yearly rental income). GRM doesnt include expenses, such as utilities, insurance, and property taxes. In this case, the equation is 300,000/25,000 = 12.

Is there math on the CA real estate exam?

The law requires that salesperson license applicants demonstrate in a written examination: Appropriate knowledge of the English language, including reading, writing, and spelling; and of arithmetical computations common to real estate and business opportunity practices.

How do you calculate a 70 30 commission split?

In this case, 70% of the commission on a sale goes to the brokerage and 30% to the agent. Imagine an agent makes a sale worth $420,000. Of this selling price, 3% (or $12,600) goes to the selling side. In a 70/30 split, the agent would receive $3,780 and the brokerage would get $8,820.

What is the investor formula in real estate?

To calculate the propertys ROI: Divide the annual return by your original out-of-pocket expenses (the downpayment of $20,000, closing costs of $2,500, and remodeling for $9,000) to determine ROI. ROI = $5,016.84 $31,500 = 0.159. Your ROI is 15.9%.

How do you calculate profit on a real estate sale?

You calculate your net proceeds by subtracting the costs of selling your home and your remaining mortgage balance from the sale price. For example, if your sale price is $1,000,000, your remaining mortgage balance is $350,000, and the total closing costs are $60,000, then your net proceeds would be $590,000.

How many math questions are on the Florida real estate exam?

There are 45 questions on real estate principles and practices, 45 questions cover Florida and Federal laws, 10 questions require math calculations. The Florida Real Estate Broker Exam is a 100-question multiple-choice exam.

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