Question

Suppose 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 (rounded to the nearest dollar)?

Answer 1

I need to sell the home for the price of $317,460.

Explanation:

I need to pay 5.5% of the total to the broker.

I also want to gain $300,000 as a profit. I need to sell the house in such a price, so that after giving the 5.5% to the broker, i also have $300,000.

I need to find the value of 100%, where (100 - 5.5) = 94.5% represents $300,000.

Hence, 100% =
`(300000)/(94.5) * 100 = 317460.3`.