Real Estate Math
A seller wants to net $480,000 after paying a 6% commission. What must the minimum sale price be?
A$508,800
B$480,000✓ Correct
C$512,000
D$510,000
Explanation
Net = Sale price × (1 − commission rate). $480,000 = Sale price × 0.
People Also Study
Related Massachusetts Questions
- A Massachusetts seller wants to clear $300,000 after paying off a $175,000 mortgage and a 5% commission. What minimum sale price do they need?Real Estate Math
- A Massachusetts seller wants to net $400,000 after paying a 5% commission. What must the minimum sale price be?Real Estate Math
- 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?Real Estate Math
- A seller received $418,600 after paying a 5% commission. What was the sale price?Real Estate Math
- A Massachusetts buyer's agent negotiates a purchase price $30,000 below asking price. The agent's commission is a percentage of the sale price. The agent has a possible conflict of interest because:Agency
Key Terms to Know
Amortization
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
Study This Topic
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →