Property Valuation
A seller has a home with market value of $750,000. The seller wants to net $700,000 after paying a 6% commission. Can the seller achieve this by listing at $750,000?
AYes, because $750,000 minus 6% leaves exactly $705,000
BNo, because $750,000 minus 6% ($45,000) equals only $705,000 — the seller would net more than $700,000✓ Correct
CNo, because $750,000 minus 6% equals only $705,000, so the seller would need to list higher to net $700,000 after commission
DYes, because the 6% commission is negotiable and will be reduced at closing
Explanation
$750,000 × 6% = $45,000 commission. Net = $750,000 – $45,000 = $705,000. Since $705,000 > $700,000, the seller would exceed their target net at the $750,000 list price. The seller does not need to list higher to achieve a $700,000 net.
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