82 Other Financial Tools
BEAR-CH3.DOC BA Real Estate Guidebook Bob Fedorisko Revised: 08/29/96 9:19 AM Printed: 09/28/99 1:21 PM
Page 82 of 20
The solution below uses the following formula to calculate
the required selling price:
Selling Price
Required Net
1 Sales Commission *
=
−
* Example: 6% = .06
Steps
Keystrokes
Display
Compute the divisor
(one minus the sales
commission).
g
X
6
A j
T g
MEM =
0.94
Compute the required
selling price.
125
q B
]
g
j
132,978.72
Compute the sales
commission.
O
6
A j
7,978.72
Finding the Net Selling Price after Commission
You have agreed to list a client’s house. The client states
that he must net at least $125,000 after the sale. You
determine that this is a fair amount after evaluating the
property. If your sales commission is 6%, what is the
minimum selling price to satisfy your client’s
requirements? What is your commission for the sale?
Solution
