California DRE Salesperson License & Examination Preparation License Requirements Exam Content
Valuation & Financial Analysis

Real Estate Math & Financial Analysis

Proration, commissions, area, capitalization, loan-to-value, interest and investment calculations.

Write the formula first

Commission, area, prorations, capitalization and LTV become easier when units are explicit.

Estimate the answer

Reasonableness checks catch decimal errors.

Separate price, value and loan amount

Each calculation answers a different question.

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