Question

Debra wants to net $100,000 on her house. Her closing costs will be 15,000 plus a 6% commission. She owes $310,000 on her loan. What is the minimum listing price that Debra can agree to?

Answer 1

$452,128

Explanation:

Profit after selling = $100,000

Closing cost = $15,000

Debra owes $310,000 on loan

Sellers gross net = profit after sales + closing cost + loan

= $(100,000 + 15,000 + 310,000)

= $425,000

Since the commission is 6% , the sellers percentage = 100 -6

= 94%

= 0.94

Minimum listing price = 425,000/0.94

= $452,127.66

= $452,128

The minimum listing price Debra can agree to is $452,128