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Real Estate Math Essentials

Master the essential calculations every Philippine real estate professional needs. Learn commission computations, lot area pricing, amortization formulas, zoning density, property valuation, and closing cost worksheets. with step-by-step examples.

6 lessons·45 min total reading·Free

What You'll Learn

  • Compute broker commissions, splits, and VAT on professional fees
  • Calculate price per square meter and compare properties of different sizes
  • Use the amortization formula to compute monthly payments and compare loan options
  • Apply FAR, PSO, and setback rules to determine maximum buildable area
  • Estimate property values using market comparison, income, and cost approaches
  • Prepare a complete closing cost worksheet showing net proceeds and total acquisition cost

Lessons

1

Commission Calculations: Rates, Splits, and Net Proceeds

Master real estate commission math including standard rates, broker-salesperson splits, VAT on professional fees, and computing net proceeds for clients.

7 min
2

Lot Area and Price Computations

Master lot area measurements, price-per-square-meter calculations, floor area vs lot area distinctions, and how to compare property values across different sizes and locations.

7 min
3

Amortization and Loan Computations

Learn how to compute monthly amortization, understand interest calculations, and compare loan terms. Essential math for brokers helping clients with financing.

8 min
4

Zoning Density: FAR, PSO, and Building Computations

Master Floor Area Ratio (FAR), Percentage of Site Occupancy (PSO), setback requirements, and building height computations. Essential math for property development feasibility.

7 min
5

Property Valuation: The Three Approaches

Learn the three standard approaches to property valuation: Market Comparison, Income Capitalization, and Cost Approach. Understand when to use each and how to compute basic valuations.

8 min
6

Closing Cost Computations and Net Proceeds

Master the complete closing cost worksheet for Philippine real estate transactions. Compute seller net proceeds, buyer total cash-out, and properly allocate costs between parties.

8 min