Alberta Real Estate Licensing Exam Practice · Question
A seller is looking to net $500,000 from the sale of their home. The listing agreement states a commission rate of 5% on the gross sale price. Legal fees and other disbursements are estimated at $2,500. What is the minimum selling price required to achieve the seller's net goal?
Let 'X' be the selling price. Seller Net = X - (0.05 * X) - $2,500. We want $500,000 = X - 0.05X - $2,500. So, $502,500 = 0.95X. X = $502,500 / 0.95 = $528,947.
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Question: A seller is looking to net $500,000 from the sale of their home. The listing agreement states a commission rate of 5% on the gross sale price. Legal fees and other disbursements are estimated at $2,500. What is the minimum selling price required to achieve the seller's net goal?
Answer options: ✅ $528,947.37
- $526,315.79
- $530,000.00
- $523,684.21
Correct answer: $528,947.37
Explanation: Let 'X' be the selling price. Seller Net = X - (0.05 * X) - $2,500. We want $500,000 = X - 0.05X - $2,500. So, $502,500 = 0.95X. X = $502,500 / 0.95 = $528,947.37.
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