A seller wants to net $275,000 after paying a 6% commission and has no other closing costs to consider. What sale price is needed?
Correct Answer
A) $292,553.19
Because the seller keeps 94% of the price after a 6% commission, divide the target net by 0.94: $275,000 ÷ 0.94 = $292,553.19.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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