1. MATH

2. Mean, Median & Mode MEAN: Is the average MEDIAN: Is the centre point. You must list numbers from lowest to highest and select the value that is in middle MODE: Is the number repeated the most

3. Example 210,000TOTAL: 2,550,000 211,000 213,000Mean: 2,555,000/12 =212,917 214,000 215,000Median: 213,000 + 213,000/2= 213,250 210,000 213,000Mode: 210,000 was repeated more than once 210,000 215,000 218,000 210,000

4. Weighted Average Sometimes, economists will work with weighted, as opposed to simple averages An Example- A two story home costs $180,000, split levels $150,000 and bungalows $120,000. The simple average (mean) of house sale prices is $150,000. Further investigation reveals that these figures were derived from 100 sales (40 bungalows, 40 split levels and 20 two storeys). The true average price should reflect the higher activity in the lower price ranges, so the weighted factors are: Bungalows- 40 (40 out of 100) x $120,000= $48,000 Split Levels- 40 (40 out of 100) x $150,000= $60,000 Two Storeys- 20 (20 out of 100) x $180,000= $36,000

5. Commission: Sold price = $400,000. The total commission = 5% Brokerage Split = 50/50 ABC Realty Split = 90/10 Sold price x Total % x 50% M + x Salesperson % =Brokerage $400,000 x 5% (20,000) 50% (10,000) x 90% (9000) The amount that ABC would receive can be calculated by 10,000- 9,000= 1000, which would be the commission split subtracted by the salesperson’s commission split Salesperson commission= $9750 ABC Realty Split =90/10 Brokerage Split= 50/50 Total commission= 5% Your commission/Your rate/your company%/Total =Sold Price $9750/90%/50%/5%= $433,334

6. Commission: What if you know the amount paid as down payment to a property and the fraction was taken as a loan. Would you be able to establish the sold price? Your down payment is $80,000; Your loan is 7/10. What is the sold price? 7/10= 70% The down payment is 30% of the value. We get this by subtracting 100% - 70% = 30% $80,000/30% =266667

7. Land Transfer Tax Extremely important $0 - $55000 x 0.5% $55001 - $25000 x 1% -275 $250001 - $400000 x1.5% - 1525 Over $400,000 Property Tax x 2% - 3525 Over $400000 Land x 1.5% - 1525 Over $400,000 COMMERCIAL x 1.5 % - 1525 Example- Property $135000 x 1% - 275 = 1075 Property $255000 x 1.5% - 1525 = 2300 Property $450000 x 2% - 3525 = 5475 Vacant Land $975000 x 1.5% - 1525 = 13100

8. Closing Adjustments Closing day is buyer’s day (Buyer is responsible) (Yearly Taxes/365) x Number of days = Seller days and Buyer days Seller days = From January 1 st to before closing Buyer days = From closing to December 31 st Examples: Closing day is June 14 th, Taxes are $1425 p/year 1.Adjustments: a. Seller pays Buyer ($1425/365) x $2380 p/year Closing day is November 1 st, Taxes are $2380 p/year 1.Adjustments a.Paid by Seller. Who gets the credit and how much of it? b.$2380/365 x # of days (Buyer 61)= $397.75 paid to Seller from Buyer

9. Closing Adjustments Anytime you see OIL TANK Filled by Seller, no sharing, Full tank x $ Give to seller (THIS IS IMPORTANT)  The Buyer pays for the Fuel and pays the money to the Seller A house is rented for $975 p/month The Tenant pays in Arrears (not in advance) If the property sells by January 15 th, then how much does the Seller get? 1. $975/31 x 14 = $440.32

10. Number of Days January: 31 February: 28-59 March: 31-90 April: 30-120 May: 31-151 June: 30-181 July: 31-212 August: 31-243 September: 30-273 October: 31-304 November: 30-334 December: 31-365

11. Area Calculations Feet x Feet = SqFt (Square Feet) Meter x Meter = SqMt (Square Meter) Triangle = (Base x Height) / 2 Or ½ Base x Height (10’ x 20’)/2 = 100 SqFt 20’ 10’ 90’

12. Area Calculations Trapezoid – Add both Parallel Sides x Center Height/2 (64 + 85x 23) /2 = 1713.5 SqFt 64’ x 23’ 85’ 90’

13. Area Calculations Parallelogram- Base x Center Height 75x 25 = 1875 SqFt 75’ 25’90’

14. Area Calculations Rectangle –Base x Height Example #1 Total area 15.7 x 9.8 =153.86 Missing area 6.1 x 1.8 = 10.98 1.1 x 5.5 = 6.05 9.8 x 1.5 = 14.7 Total missing area: 10.98 + 6.05 + 14.7 = 31.73

15. Area Calculations Solution –153.86 – 31.73 = 122.13 5.5 9.8’ 4.3’ 6.1’ |----------------------------------------------------- | | 1.5’ | | 9’8 | 4.8’ 1.8’ 15.7’

16. Example #2 Total area = 14.5 x 8.9 = 129.0 Missing area 2.7 x 1= 2.7 12.5 x 1.4 = 17.5 3.1 x 1.5 = 4.65 Total missing area: 2.7 + 17.5 + 4.65 = 24.85

17. Solution: 129.05 – 24.85 =104.2 4.4’ 1.5’ 7.9’ 2’ 12.5’ -------------------------------------------------- ------- |||||||||||||| ------------ | 1’ 11.8’ 1.4’ 3’ 2.7’

18. You have 3000 SqFt house and the city allows 10% extension So 3000 x 10% = 300 SqFt. 300 SqFt * 0.093 = 27.9 SqMt. You answer should be near this value Options are: 5M x 5M = 25 SqMt 6M x 6M = 36 SqMt 7M x 3.9M = 27.3 SqMt 8M x 8M = 64 SqMt You have a 97’ x 147’ plot of land. The city requires 1300 SqMt to give permission for the building. Does it meet the requirement? If so, what is 14% of the building size? 97’ x 147’ = 14259 SqFt x 0.0093 = 1326.09 SqMt So yes, the lot in deed meets the requirement You can build 1325 x 14% = 186 SqMt rounded off

19. Volume Calculations F x F x F = Cubic Feet/27 = Cubic Yard 12” = 1 foot or value in foot = value in inches/12 House height is always measured 6” (SqFt) below surface to half of top Volume = L x W x H or Area x Height 5’ 960 SqFt 18’ 10’ ½ Always so Height = 0.5 + 18 + 5 = 23.5’ Volume = 960 x 23.5 = 22560 Cubic Feet Cubic Yards: 22560/27 = 836 Cubic Yards If cost per cubic feet $5.00, then total cost = 5 x 22560 = $112,800

20. If cost per cubic yard is $125.00 then the total cost = 125 x 836 = $104,500 A driveway measures 40’ long 20’ wide and 5” thick so the cost would be $5.00 per cubic feet. How much would 4 driveways cost then? If the cost is $125.00 per cubic yard, then what would the final amount be? (40’x20’x5”) 12 (40’x20’x5”) 12 X 4 X $5.00 = $6666 X 4 = 40.38 x $125.00 = $6173

21. Mortgage Calculations When mortgage interest 10% is calculated semi-annually not in advance. What is the effective rate then? Interest/100/2 + 1 x =-1 x 100 (formula) This I only changes; Now is to 10 maybe 9,8,7 10/100/2 + 1x = -1 x 100 = 10.25% 9…. = 9.20% 8…. = 8.16% 7…. = 7.12% 6…. = 6.09%

22. Mortgage Calculations If you take $5000 loan for 3 months with 9% interest rate compounded monthly. How much total to be paid after 3 month? Interest only? 1/100/12 + 1x = x $ is the formula This I can change. 2 months we kept 2 equals. If 4 months ===; 5 months ===; one less. $ amount can change 9/100/12 + 1x == x $5000 = 5113.35 total Only interest = 5113.35 – 5000 = $113.35 total

23. Mortgage Calculations Your 1 st mortgage is $43000 at 11% and you have a second mortgage at $22000 at 16%. What is your mortgage average interest rate? 1 st mortgage x rate + 2 nd mortgage x rate/total mortgage % (43000 x 11%) (4730) + (22000 x 16%) (3520)/ 65000 =12.69% Payments on your mortgage may be: Monthly, Semi monthly, Weekly or Bi-weekly From the chart, take the payment factor (whatever is applicable) Payment Factor x Loan 1000 Payment blended with Principal + Interest = PAYMENT

24. Mortgage Calculations Your house purchase price is $220,000. Your closing cost is $10000, moving $5000. Other $2000. If you assume an existing mortgage of $140,000, then how much liquid cash do you need on closing, assuming means that you are taking the seller’s loan. Total needed = $237,000 - $140,000 = $97,000 If you are not assuming, then you have to have $237,000 BIG = Small/Rate % S= B X R% R= (S/B) % S Big $ x Rate % B X R% Small $ S?

25. Mortgage Calculations R% GDS = Gross Debt Service Ratio (PI + T) R% TDS = Total Debt Service Ratio (PI + T + Other) Buyer Income is Big $. Payment is Small $ PI + T = Principle + Tax + Interest; Other = Car loan or any other Buyer Income x GDS – Taxes/12 = PI Monthly Buyer Income x TDS – Taxes/12 – Car Loan – PI Monthly When PI is asked monthly/12 When PI is given monthly x 12

26. Question: A house is listed for $320,000 and sold for 94% of the list price. The sold price is: Answer- B X R = S 320,000 x 94% = $3000,8000 A house is listed for $320,000 with various upgrades. The price represents only 94% of the sold price. The actual sold price is? ANSWER- $320,000 represents 94% of the sold price This means that the sold price is more than the listed price meaning – The sold price is BIG BIG = S/R $320,000/94% = $340,425

27. Question: A house is listed for $320,000 with 5% commission and a GST rate of 5% commission. The GST amount is: Answer- Big X R X R 320,000 x 5% x 5% = $800 A house listed for $230,000 with 5% commission and Leslie gets 50% of it. How much will she get? Answer- Big X R X R 320,000 x 5% x 50% = $800 Leslie will get $800 of commission

28. House A listed at- $240,000 and is sold for $229,000 House B listed at- $243,000 and is sold for $240,000 House C listed at- 250,000 and is sold for $230,000 How much % is each of the houses sold for? Use- R = S/B A = 95.42% B = 99% C = 92% Arrange them for lowest to highest and highest to lowest- C, A and B B, A and C The house sold for the lowest % difference is- House B

29. A place is rented this year for $8.75 p/ SqFt but was rented last year for $8.55 and the year before that it was rented for $9.05. The % increase from last year to this year is how much per month? Answer- R = S/B R= 0.20/8.55% R= 2.34% R= 0.30/8.75% R= 3.43% The rent next year will be – 3,500 x $9.05 = $31,675 p/year $31,675/12 = $2640 p/month

30. Conversion Calculations If you want to convert your existing 1 acre of land into 3 parcels and also want to include a pedestrian footpath which will require 10% of your land. Each parcel would be: 1 Acre = 43560 SqFt 2 Acres = 2 x 43560 Solution- 43560 – 10%/3 = 13068 SqFt Each parcel= 13068 SqFt Important point- The % may change, The # of acres may change For example- 15%, 2 acres and 5 parcels= 2 x 43560 – 15% = 14810 Sqft

31. Practice Questions If you have a business and your business Gross Income is $283,500 and a vacancy loss of 3%. The cap rate is 10.5%, then your value is: Solution – Gross- Vacancy Loss – Expenses = Small/R 342,000 – 3% - 283,500 = 48240/10.5% Value (Big) = Small/Rate = $459,429 If a municipality tax has a base of $60,000,000 and required taxes are $1,850,000, the tax rate would be: Solution- R= Small/Big 1,850,000/60,000,000 = 3.08%

32. Practice Questions A buyer has an income of $60,000 and must pay $4,000 (T) in property taxes per year and $12,500 PI (Principle and Interest) per Year. The GDS would be: GDS (R) = Small/Big % [(PI + T)/ (B x I)] Solution- [(723.46 x 12 + 1800)/ 50,000% = 20.96% If you pay $15,000 p/year on PI + T and the bank says GDS is 30%. The amount of income needed is: Solution- Big = Small/Rate % $15,000/30% = $50,000

33. Practice Questions If your income is $45,000 and you pay $1450 in property taxes yearly. GDS is 30%, your PI monthly would be: Solution- Small = Big x Rate This is PI + t – you would need to calculate your PI monthly 13500 – 1450(T)/12 = $1004.17 B x R – Taxes/ = PI monthly Your income is $45,000 and you pay $1450 in property taxes yearly with 40% TDS and your car loan a month is $320, your monthly PI would be- Solution- B X R – T/ - Car loan 4500 x 40% - 1450/12 – 320 = 1059.17

34. Practice Questions If your income is $50,000 and PI is $723.46 monthly. Taxes are $1800 per year and your car loan is $320 monthly, TDS is: Solution- R = Small/Big [(723.46 + 320 x 12 + 1800) / 50000]% = 28.64% If a condo fee given is added ½ year amount If the bill is given, add full amount (# of sold properties) / (# of new listings) If the answer is more than ‘1’ then there is a Sellers Market If less than ‘1’ then there is a Buyers Market