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29 January, 15:04

Your seller wants to net $100,000 after the 5% commission is paid. Assuming no closing costs, at what price does the home need to sell for the seller to net this amount?

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  1. 29 January, 15:24
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    The home needs to sell for $105,263.16 for the seller to receive net of $100,000.00

    Explanation:

    The amount that the home needs to sell can derived from the net to seller's formula given as: Net to seller = Sale Price * (100% - commission rate)

    Net to seller=$100000

    Sale price is unknown

    commission rate is 5%

    $100000=sale price * (100%-5%)

    $100000=sale price * 95%

    sale price = $100000/95%

    sale price = $105263.16

    For the seller to receive $100000 after 5% commission the property must e sold for $105,263.16
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