The broker represents both buyer and seller with 5.25% commission rate and received $8,000. What was the final sales price?
Correct Answer
C) $152,380.95
Sale Price = Commission ÷ Rate = $8,000 ÷ 0.0525 = $152,380.95
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Related Topics & Key Terms
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Key Terms:
Related Concepts
The capitalization rate (cap rate) is the ratio of a property's net operating income to its sale price, expressed as a percentage. It is used to estimate value and compare profitability of investment properties. Cap Rate = NOI / Value.
The capitalization rate (Cap Rate) is the rate of return on a real estate investment based on its expected income.
Commission splits refer to the division of the total real estate commission among the listing and selling brokerages, and then between each broker and their respective agents. Commission rates and splits are always negotiable.
More Real Estate Math Questions
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- → Annual property taxes on a home are $2,400. The property closes on June 1. Using a 360-day banker's year and assuming taxes are paid in arrears, what is the amount the seller owes the buyer as a tax proration credit?
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