Florida Real Estate Math Formulas Sales Associate Flashcards

Florida Real Estate Math Formulas (Sales Associate) Flashcards Estimated market valuerental income x market area GRM = estimated market value Total obligations ratio (TOR) for FHAtotal monthly obligations (PITI + MIP + LTO) ÷ monthly gross income Taxable valueassessed value - homestead exemptions Total obligations ratio (TOR) for conventional mortgage loan total monthly obligations (PITI + PMI + LTO) ÷ monthly gross income = Annual property taxes duetaxable value x tax rate Variable (Index) Leasenew index / original index) * original rental rate Amortizing a mortgageprincipal balance x annual interest + 12 = first month's interestmonthly mortgage payment - first month's interest = payment on principalbeginning principal balance - principal payment = new principal balance Unpaid property taxesproperty taxes for year ÷ 365 days = daily tax ratedaily tax rate x number of days seller owns property in year = proration amount (credit buyer, debit seller) Interest on assumed mortgageloan balance x interest rate = annual interest ÷ 365 days = daily interest ratedaily interest rate x number of days seller owns property in closing month proration amount (credit buyer, debit seller) Straight-line methodtotal cost to acquire property - value of the land = depreciable basisdepreciable basis ÷ useful life (27.5 or 39years) = annual IRS depreciation deduction Prepaid rentrent paid for the closing month ÷ number of days in closing month = daily rental ratedaily rental rate x number of days buyer owns property in closing month = proration amount (credit buyer, debit seller) Buildable lots in a tract43,560 square feet per acre x percent available for lots = square feet available for lots per acresquare feet available for lots per acre x number of acres in tract = total availablesquare feetTotal available square feet ÷ minimum square feet per lot = number of buildable lots in tract Cost depreciation approachreproduction cost of the structure - accrued depreciation = depreciated value of the structure + estimated value of the site = indicated value of the property Direct capitalization (IRV Formula)I (Net operating Income ) = Rate × ValueR (Capitalization Rate) = NOI / ValueV (Value or Sale Price) = NOI / Rate Property tax savingstotal exemptions x tax rate Net listing100% - listing commission percentage = percentage for seller's nettotal seller's net ÷ percentage for seller's net = desired sales price

Overall capitalization rate (OAR)net operating income (NOI) ÷ value (sale price) Lossamount lost on sale ÷ total cost Housing expense ratio (HER)monthly housing expenses (PITI + MIP) ÷ monthly gross income Calculated interest rateindex + margin = calculated interest rate Profitamount made on sale ÷ total cost Gross income multiplier (GIM)sale price ÷ gross annual income = gross income multiplier (GIM)gross annual income x market GIM = value Gross rent multiplier (GRM)sale price ÷ gross monthly rent Accrued depreciationeffective age ÷ total economic life x reproduction cost newOrreproduction cost new ÷ total economic life = annual depreciation × effective age