A seller wants to net $350,000 after paying a 6% commission and has no other closing costs to consider. What sale price is needed?
Correct Answer
A) $372,340.43
Because the seller keeps 94% of the price after a 6% commission, divide the target net by 0.94: $350,000 ÷ 0.94 = $372,340.43.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Proration calculations divide shared expenses such as property taxes, insurance, HOA dues, and rent between buyer and seller at closing based on the number of days each party owns the property.
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
Annual interest is the total amount of interest charged on a loan or investment over a year.
More Real Estate Math Questions
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