Free study sheet
NJ real estate math formulas
Commission
| Commission | Price × Rate |
|---|---|
| NJ transfer fee | Per $500 in bands; seller pays |
| Split chain | Total × Side % × Agent % |
| Trap | Never apply the agent split to the full commission |
Closing
| Proration | Annual amount ÷ 365 (or 360) × Days |
|---|---|
| Net to seller | Price − Costs − Loan payoff |
Finance
| Loan-to-value | Loan ÷ Lower of price or appraisal |
|---|---|
| Discount points | Loan × 1% × Points |
Valuation, area and tax
| Cap rate (IRV) | Income = Rate × Value |
|---|---|
| Appreciation | (New − Old) ÷ Old |
| Acre | 43,560 sq ft |
| Property tax | Assessed value × Tax rate |