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.
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.
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.
Aaron recommends the following next steps:
- I would recommend getting online and searching for real estate training courses. A lot of them you can take for free and gain further insight on what is required, and whether or not it would be a good fit for you:
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. :)
Good Luck to You!
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.
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.
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.
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.
Steve recommends the following next steps:
- Many real estate schools (both on line and in person) offer specific courses to help.
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.
Not a lot but you’ll need some basic knowledge to figure out commissions and closing costs. Hope this helps!
Basic math is required and there are lots of tools and resources available to help. Good luck!
yes, you will need math during negotiating