Taking the Real Estate License Exam requires a lot of math. But unlike traditional math classes, real estate math has a greater emphasis on vocabulary and definitions. You’ll need to learn terms like amortization, which means that payments are divided into equal amounts and appraisal, which refers to the approximate value of something. Knowing the definitions of these terms will help you pass the exam and begin a rewarding career.
While real estate may not seem like it requires high levels of mathematics, it’s important to have some understanding of the basics. You’ll need to know addition, subtraction, multiplication, and basic algebra. You’ll also need to know how to categorize real estate into five different categories, including commercial, residential, raw land, and special use. There are also several different ways to invest in real estate, including direct property investments, investment trusts, and rental property.
As a real estate agent, you’ll have to use basic math and do calculations. This math includes percentages, appraisals, and depreciation. You’ll also need to know how to work with decimals and fractions. Luckily, there’s a formula that will make your life easier on the exam. But if you’re worried about the test, there are several books that can help you learn the basics.
The math you need to learn is also critical in the real estate business. While you won’t be using complex math formulas in your job as a real estate agent, you’ll need to know how to calculate similar homes for sale, average price per square foot, and more. You’ll also need to know how to calculate estimated closing costs, which will be necessary if you’re going to sell or rent a home.