Contract negotiation for Listings

Question 1

Formula: Net Listing

100%- listing commission percentage = percentage for sellers net
total sellers net / percentage for sellers net = desired sales price

Answer 1

Example : Assume the property owner indicates to the sales associate that the owner wants to net 142,000 from the sale of a property. The sales associate must assist the property owner with a listing price that will cover the owner’s estimated closing costs and provide the brokerage with a commission. The sales associates estimates that the sellers closing costs will be approximately 3,700.00

Question 2

142,000 required net to seller + 3700 closing costs = $145, 700 total needed by the seller.
The brokers commission for this type of transaction is 6%
100% - 6% commission rate is = 94% remaining for the seller
$145, 700 /94 (94%) = 155,000 selling price
The property must sell for $155,500 to cover estimated closing costs of $3,700 to provide a commission of 6% and for the seller to net $142,000