Real Estate Math
A NJ broker lists a property at $549,000 and the seller wants to net $490,000 after 5% commission. Did the broker set the price correctly?
AYes, the math works exactly
B$521,550✓ Correct
CNo, the price should be $540,000
DYes, because $549,000 × 0.95 = $521,550
Explanation
Required list price = $490,000 ÷ 0.95 = $515,789. The $549,000 listing would net $521,550 after 5% commission, which exceeds the seller's required net—so the price is actually higher than needed. The correct math: $549,000 × 0.95 = $521,550 > $490,000. The listing price is set higher than needed, giving the seller more than their desired net.
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