A seller wants to net $300,000 after paying a 6% commission and has no other closing costs to consider. What sale price is needed?
Correct Answer
B) $319,148.94
Because the seller keeps 94% of the price after a 6% commission, divide the target net by 0.94: $300,000 ÷ 0.94 = $319,148.94.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Net operating income (NOI) is the annual income generated by an income-producing property after deducting operating expenses, but before deducting mortgage payments, income taxes, and depreciation.
Net Operating Income (NOI) is the revenue a property generates after deducting all operating expenses.
Converting a percentage to a decimal involves dividing the percentage value by 100.
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