The correct answer is C, approximately $175,532. A 6% commission means the seller retains 94% of the gross sales price.
Let the required price equal P:
P × 0.94 = $165,000
Therefore:
$165,000 ÷ 0.94 = $175,531.91
Rounded to the nearest dollar, the necessary sale price is $175,532.
The common error is to calculate 6% of $165,000 and add that figure to $165,000. That approach is incorrect because the commission is computed against the gross sale price, not against the desired net amount.
The general formula is:
Required gross price = desired net ÷ percentage retained
This problem assumes no additional seller costs. In an actual transaction, mortgage payoff, taxes, attorney charges, conveyance taxes, repairs, assessments, and other closing expenses could materially affect the seller ' s final proceeds.
Massachusetts does not establish a mandatory 6% brokerage commission; commission rates are negotiable. The 6% figure is simply the contractual assumption supplied for this calculation.
Study Guide Reference: Real Estate Calculations — Commission and Seller-Net Problems.
