Question

An online real estate website estimates that a fair price for Jerrold’s house would be $715,000. The market is

strong, so he is optimistic and puts the house on the market for $750,000. Two weeks later, the best offer
he’s gotten is $718,000, and so he accepts that offer. At what percent above the website’s estimate did he set
his asking price? At what percent below his asking price did he sell

Answer 1

approximately 4.2667%

Explanation:

To calculate the percentage above the website's estimate that Jerrold set his asking price, we can use the following formula:

Percentage above = ((Asking price - Website estimate) / Website estimate) * 100

Percentage above = (($750,000 - $715,000) / $715,000) * 100

Percentage above ≈ 4.895

Therefore, Jerrold set his asking price approximately 4.895% above the website's estimate.

To calculate the percentage below his asking price that Jerrold sold for, we can use the following formula:

Percentage below = ((Selling price - Asking price) / Asking price) * 100

Percentage below = (($718,000 - $750,000) / $750,000) * 100

Percentage below ≈ -4.2667

Therefore, Jerrold sold his house approximately 4.2667% below his asking price.