Real Estate Math

A Texas seller nets $198,000 after paying a 5.5% commission and $4,500 in other closing costs. What was the sale price?

A$214,000

B$215,000

C$216,000✓ Correct

D$217,000

Explanation

Let P = sale price. Net = P − 0.055P − $4,500 = $198,000. 0.945P = $202,500. P = $202,500 ÷ 0.945 = $214,286. Closest answer is $214,000 or the calculation: if P = $216,000: commission = $11,880, closing = $4,500, total deductions = $16,380, net = $199,620. If P = $215,000: $11,825 + $4,500 = $16,325, net = $198,675. Closest is $215,000.

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