1. What is the Sale to Original Price Calculation?

This calculation determines the original price of a property before commission was deducted from the sale price. It's essential for real estate professionals and sellers to understand the actual value received after commission.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Sale \) — Final sale price (USD)
• \( Commission\% \) — Commission percentage deducted from sale

Explanation: The formula reverses the commission calculation to find the original price before commission was taken.

3. Importance of Original Price Calculation

Details: Understanding the original price helps sellers evaluate their net proceeds and compare different commission structures offered by real estate agents.

4. Using the Calculator

Tips: Enter the final sale price in USD and the commission percentage (typically between 3-6% for residential real estate). The commission must be less than 100%.

5. Frequently Asked Questions (FAQ)

Q1: Why is the original price different from the sale price?
A: The original price represents what the seller would have received if no commission was deducted. The sale price is the final amount after commission.

Q2: What's a typical real estate commission rate?
A: In the US, commission rates typically range from 5-6% of the sale price, split between buyer's and seller's agents.

Q3: Does this calculation account for other closing costs?
A: No, this only calculates the price before commission. Other costs like taxes, fees, and concessions would need separate calculations.

Q4: Can I use this for commercial real estate?
A: Yes, though commercial commissions often have different structures (like graduated percentages).

Q5: How does this help negotiate commission rates?
A: By showing the exact impact of commission percentages on your net proceeds, you can better evaluate agent offers.