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?
(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.
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?