Kenya
As a real estate agent is their a lot of math involved for this career?
#real-estateagent
18 answers
Joshua Potter
Joshua’s Answer
Brian McCloskey
Brian’s Answer
Not a lot but you’ll need some basic knowledge to figure out commissions and closing costs. Hope this helps!
Aaron Castle
Aaron’s Answer
Being a real estate agent does require math knowledge related to financial concepts. However, you can get started as a new agent and learn the concepts along the way. You can sell real estate without being a math whiz, however knowing math is a big benefit with negotiating deals and determining which properties would be a good or poor investment for your clients and/or yourself. Mainly, you are looking at percentages, and you want to learn about financial concepts of future value, net present value, cash flow concepts, compound interest, Return on Investment, etc. You can start with the basics, and increase your knowledge of financial concepts as you gain more experience. A large part of being a real estate agent is sales related, so the strongest skill is listening and communication, being comfortable with talking to people and coaching them on the real estate/mortgage process, and being able to provide them with options that fit their needs, which also involves networking and social engagement.
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Robert Livingston
Robert’s Answer
Having an understanding of math is important, but the most important is the ability to learn what you need. The want to learn is the most important skill you can ever have.
Aaron Robison
Aaron’s Answer
A real estate agent will need a basic understanding of math. Typically addition, subtraction, multiplication and division will be sufficient. However to separate yourself and get insights as to where a market is headed some level of higher math such as algebra would be good. Besides being able to do the mathematical portion it is equally important to be able to interpret what the result of the operation or equation is just as important. This will help not only you but your customers and colleagues understand what they should be doing or looking out for.
As an appraiser it is necessary to understand the supply and how long homes are on the market. This will impact the value and how quickly a property may sell. If prices too high the home will sit on the market for an extended period of time. The equation for this is called the absorption rate and applies to realtors when setting a price for a home.
Meghan Thrasher
Meghan’s Answer
Typically over time you will start to memorize the math that is more widely applicable. For example, you will start to be able to know the price range of a home for purchase by the monthly payment. So when someone says they only want to pay 1,500 a month towards a mortgage you will quickly know roughly the price range of homes they want to look in. This is less of an equation math and instead is related more to experience and recognizing trends.
You will also need to know how interest rates impact the cost of a mortgage. For example, right now interest rates are down to two percent which is an all time low. What this means is that buyers now have a 20% increase in purchasing power. So for the same price they would have paid at a 4% interest rate they get 20% more house. It seems like crazy math but over time it starts to make sense.
You will need to calculate commission for your paychecks. This will be a percentage of your clients total purchase price. Nothing too crazy, just the total multiplied by the percentage (usually 3% in Texas).
You will need to understand how to use math to gain insight into your businesses production. You will need to know how many calls a day you make to lead generate. You need to know how many of those calls lead to an appointment. Then you need to know how many of those appointments result in a closed transaction. These are what we call conversion rates in the industry. You can also apply this to open houses, client events, past clients, referrals and more to get conversion rates. These are important because they paint a picture of your success and a clear path to reaching your goals. The math isn’t too difficult here but it does exist.
There are many ways real estate agents use math skills and leverage them to reach their goals. It isn’t complicated math but it is math nonetheless.
I hope this helps you!
Lance Kirkpatrick
Lance’s Answer
Yes you will need to know some basic math in order to have a succeful career as a real estate agent. Most state real estate license exams have a math portion on the the test. On a day to day basis you will need to be able to calculate percentages and be able to explain closing statements to your client. Surprisingly you will need to know math in all aspects of your personal and professional life. I was a real estate agent for 7 years and found it to be a flexible And financially rewarding career.
Robert Stirling
Robert’s Answer
Math is extremely important in the real estate world. As a real estate agent, specifically, you deal with math in a number of areas. One way is calculating the value of a home. You do that by reviewing comparable homes in the market and adjusting the values based on differences between properties (i.e. condition, lot size, additional improvements like swimming pools, etc). You also use math to calculate the estimated monthly payment that your buyer will be looking at when purchasing a home. You also want to properly calculate your commission and any fees owed to your broker. You will be responsible to review the settlement statement with your buyer or seller to confirm all fees are accurate. So, in short, there is a lot of math involved. You will constantly be making calculations as you are dealing with numbers in all aspects of real estate.
Sheila Jordan
Sheila’s Answer
Hello Kenya: Basic math is an important part of our life. I'd think that there is a small amount of math involved with this career. Basic math for financing calculations is all the math that is required for real estate licensing in most states. Many states also allow the use of calculators to answer math questions on a real estate licensing exam.
Here are some of the areas you'll need:
Algebra (for comparing variables)
Geometry ( for lot and room sizes)
Statistics ( for analysis of markets and trends)
Computer Science ( for marketing and communications)
Calculus ( for tools to invest all the money you make)
A Real Estate Agent could be a very lucrative career if you are successful at it. So go make dream homes happen. :)
Source:
https://www.quora.com/What-kind-of-math-is-needed-to-acquire-a-real-estate-license
Good Luck to You!
Basic math calculation along with percentages. Not too complicated
Petet Otub
joann price
joann’s Answer
yes,
Hi Joann. It looks like your answer may have gotten partially cut off while you were submitting it.
Jared Chung, Admin
Angel Rivas
Angel’s Answer
joann price
joann’s Answer
yes, you will need math during negotiating
Amber Cecil
Amber’s Answer
Cyndi Tarlton
Cyndi’s Answer
Agreed with the others. Basic math, commissions, values, and repairs should be known. As well as being able to provide details on such to your clients.
Greg Cummins
Greg’s Answer
There is math involved however there are many tools available to aid you in this and it is dependent on what areas of the real estate industry you go into.
Amber Cecil
Amber’s Answer
Basic math is required and there are lots of tools and resources available to help. Good luck!
Jacob Olsen
Jacob’s Answer
Steve Dailey
Steve’s Answer
Yes. Real Estate careers generally require some basic math skills. The good news is that there are many apps, computer programs, or calculators that can help you greatly. Many real estate careers involve financial decisions, value decisions, and other details that deal with math.
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