Real Estate Math
A Hawaii seller wants to net $520,000 after paying a 6% commission and $8,500 in closing costs. What must the sale price be?
AA. $562,234✓ Correct
BB. $562,234
CC. $560,638
DD. $565,000
Explanation
Let SP = sale price. Net = SP - (0.06 × SP) - $8,500 = SP × 0.94 - $8,500 = $520,000. SP × 0.94 = $528,500. SP = $528,500 / 0.94 = $562,234. The agent must price the property at approximately $562,234 for the seller to net $520,000.
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