Real Estate Math

A home sells for $420,000. The seller pays a 5.5% commission and $3,200 in closing costs. What are the seller's total selling costs?

A$23,100
B$26,300✓ Correct
C$26,200
D$19,900

Explanation

Commission = $420,000 × 0.055 = $23,100. Total selling costs = $23,100 + $3,200 = $26,300. To solve this, multiply the relevant values: $420,000 and $3,200 at 5.5%.. The correct answer is $26,300.. This is a common calculation on the Alaska real estate exam.

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