If a Seller wants to net exactly $50,000 but must pay a 7% commission and a $1200 settlement fee, what must the property sell for?

Study for the North Carolina Post Licensing 301 Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your test!

To determine the selling price of the property, one must account for the seller's net desire of $50,000, the 7% commission, and the $1,200 settlement fee.

First, the total amount the seller needs to receive after all costs are deducted is $50,000. However, the seller also has to cover the costs incurred from the commission and the settlement fee. Let's denote the selling price as "X."

The commission of 7% will be calculated on the selling price, which means the seller only retains 93% of the selling price after the commission is deducted (100% - 7% = 93%). Therefore, the amount retained from selling the property before considering the settlement fee will be:

0.93X

Since the seller also has to pay the $1,200 settlement fee, the equation to represent the seller's net proceeds becomes:

0.93X - $1,200 = $50,000

To find X, you need to solve the equation:

0.93X = $50,000 + $1,200

This simplifies to:

0.93X = $51,200

Now, divide both sides by 0.93 to solve for X: