Using math in real estate helps you compare costs, factor in fees more accurately, and make more informed financial decisions.

When buying or selling a home, emotions matter—but so do the numbers. Math is a powerful tool for comparing real estate options and ensuring the best financial decision. Today, I will explain how you can use math to calculate real costs so you can make the most out of your investment.

Comparing apples to apples. 🆚🏘️ Whether choosing between a condo and a single-family home, a Community Development District (CDD) community and a non-CDD one, or a neighborhood with or without a Homeowners Association (HOA), you need to make a fair comparison. Math helps by factoring in additional costs, such as HOA dues, condo fees, and CDD fees, which impact the total cost of ownership. Ignoring these expenses could lead to an inaccurate understanding of a property’s true affordability—costing you more in the long run.

“Math turns real estate decisions from guesswork into smart investments.”

The financial calculator breakdown. 📊💰 Let’s say you’re comparing two properties: 1) Condo A has a $300/month Condo fee, while 2) Condo B has no HOA fee.

With a 30-year mortgage at 7% interest, that $300 monthly fee is equivalent to financing an additional $45,000. This means Condo B would need to be priced at $45,000 higher than Condo A for the total cost to be financially equal.

The power of math in real estate decisions. 🔢🏠 This method applies to various real estate comparisons, such as: 1) a beachfront condo with a $1,200 monthly Condo fee versus a single-family home with no fees, and 2) a CDD community with added costs versus one without.

Using the formula, a $1,200 monthly condo fee translates to a price difference of approximately $180,370 in loan value at 7% interest. At 5% interest, the difference jumps to $223,000. While interest rates fluctuate, so does the financial impact of these fees.

Does this mean the lower-cost option is always better? Not necessarily. If the oceanfront condo is a dream home, the premium might be worth it. Sometimes that added costs may be something that you deem to be worth it (IE no lawn maintenance, or access to amenities in the building). Always keep in mind that the key to making informed decisions is to refer to facts rather than guesswork. So, when comparing real estate options, use a financial calculator to break down the numbers. It can help you determine the true cost and make the best financial choice.

If you have questions or need guidance, don’t hesitate to reach out. You can call me at 904-405-1995 or send an email to Jeff@PursuitRealEstate.com. I look forward to hearing from you!