Aseller netted $55,000 at closing. if the seller paid costs of $1000 and an 8.5% commission, what was the sale price to the nearest dollar?

The sale price to the nearest dollar was $61,202

We arrive at the answer as follows:

The term 'netted' refers to the seller's profits after deducting costs and commissions.

Hence we need to add back these amounts to arrive at the sale price.

                      Net Proceeds                                       $55,000

Add:              Costs                                                          $1,000  

                     Total                                                         $56,000  

The commission is 8.5%; however commissions are quoted as a percentage of sales price.

Expressed in other words, if the sale price was 100, commissions were 8.5. That would mean that the total above would be the equivalent of

From this we can arrive at the sale price as follows:

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