Real Estate Math

A Massachusetts seller wants to net $400,000 after paying a 5% commission. What must the minimum sale price be?

A$420,000

B$421,053✓ Correct

C$424,000

D$440,000

Explanation

Let P = sale price. Net = P − 0.05P = 0.95P = $400,000. P = $400,000 / 0.95 = $421,052.63 ≈ $421,053.

Related Massachusetts Real Estate Math Questions

A Massachusetts buyer obtains a $550,000 mortgage at 6% interest, 30-year term. Using a monthly factor of $5.996 per $1,000, what is the monthly P&I payment?
An owner wants to sell at a price that will net $350,000 after a 5% commission and $8,000 in closing costs. What should the minimum listing price be?
A property has annual gross income of $96,000, vacancy loss of 5%, and operating expenses of $38,000. What is the Net Operating Income (NOI)?
A Massachusetts property purchased 8 years ago for $320,000 has increased in value by 35%. What is the current market value?
A Massachusetts seller's closing costs include a deed excise tax on a $900,000 sale, plus a 5% commission and $2,500 in attorney's fees. What are the seller's total closing costs?
A Massachusetts property's list price is $625,000. After 60 days on market, the seller reduces it by 3%. An offer comes in at 98% of the reduced price. What is the offer amount?
A Massachusetts property is listed at $475,000. After a 6% price reduction, the buyer also negotiates an additional $5,000 credit at closing. What is the net effective sale price?
A Massachusetts property management firm charges 7% of gross rents collected. Monthly gross rents for a building are $28,000. What are the annual management fees?

Practice More Massachusetts Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Massachusetts Quiz →