does agrent commission include closing cost and attoney fee?

HOME Forum General Questions does agrent commission include closing cost and attoney fee?

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    • #6891
      Peijung Tsai
      Participant

      As I’m working on the state review exam, the question states as below:
      The owner wants to net $40,000 upon selling the property. The commission is 7%, there will be $2,500 in closing costs, plus a $450 fee to the attorney. What does the property need to sell for to get the owner $40,000 net?

      (a) $200,555

      (b) $50,125.00

      (c) $215,716

      (d) $46,182.80; the only way I can get any number close to the selection is to include the closing fee and attorney fee into the calculation (aka (40000+2500+450)/0.93 = 46182.8. I didn’t think the real estate agent commission fee includes the closing close. Please advise.

    • #6896
      Brian Swan
      Keymaster

      Yes, (d) is correct. You must add the closing costs, attorney fee, and the commission to the $40,000

    • #6899
      Peijung Tsai
      Participant

      to be clear, your answer implies that the seller agent charges commission to the closing cost. If the closing cost is $2500, the cost to the seller is $2500*1.07 = 2650. Since the closing may vary slightly, how does the seller agent provide the accurate net calculation initially?

    • #6900
      Peijung Tsai
      Participant

      Never mind. I figure out where I screw up. Thanks for the answer

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