Question

uppose you are interested in selling your home and would like to clear a net value of $300,000. If you have agreed to pay your broker a commission of 5.5% (no matter who ultimately is responsible for finding the buyer), what price must you sell the home for in order to meet your net profit ?

Answer 1

Price to sell the house = $317,460.32

Step-by-step explanation:

Total net profit required = $300,000

Provided commission to broker = 5.5% on selling value.

Therefore Net profit = 100 - 5.5 = 94.5% as this is net of commission.

Now we have Net Selling Price = $300,000/94.5% = $317,460.32

Note: Let us cross check

Commission on sales = $317,460.32 X 5.5% = $17,460.32

Therefore Net profit in hand = $317,460.32 - Commission $17,460.32 = $300,000

Final Answer

Price to sell the house = $317,460.32