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
- 17 min
Real Estate Commission Philippines: Rates & Splits 2026
Standard rates: 3-5% residential, 5% raw land, 1 month rent for leasing. Broker-salesperson splits, VAT on commission, and net proceeds computation.
- 27 min
Lot Area vs Floor Area Philippines: Price per Sqm Guide
Formula for price per square meter, when to use lot area vs floor area, and area conversions (hectare, acre). Practical examples for comparing Philippine properties.
- 38 min
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.
- 47 min
Zoning Classifications Philippines: FAR, PSO, Density Limits
Residential, commercial, mixed-use zones. How to compute Floor Area Ratio (FAR), Percentage of Site Occupancy (PSO), and buildable area under PH zoning ordinances.
- 58 min
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.
- 68 min
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.