PSI General Portion Content Outline – Real Estate Calculations
XI. Real estate calculations (Salesperson 10%; Broker 8%)
A. Basic math concepts
- Loan-to-value ratios
- Discount points
- Equity
- Down payment/amount to be financed
B. Calculations for transactions
- Property tax calculations
- Prorations
- Commission and commission splits
- Seller’s proceeds of sale
- Buyer funds needed at closing
- Transfer fee/conveyance tax/revenue stamps
- PITI (Principal, Interest, Taxes and Insurance) payments
C. Calculations for valuation, rate of return (BROKER ONLY)
- Net operating income
- Depreciation
- Capitalization rate
- Gross Rent and gross income multipliers