Net Sales Price
The definition of net sales price in real estate is the combined total cost to the buyer of a listing, excluding any auxiliary costs such as the sales fee, appraisal fee, real estate agent commission and any other supplementary costs. Net sales price differs from gross sales price in several regards in that gross sales price includes all supplementary costs, while net sales price only includes the cost paid by the buyer.
So how is net sales price calculated, and what is and is not counted while calculating it? In the following section, we’ll provide some examples of how net sales price is used as a term in real estate, and how it is calculated. Let’s begin.
Example of net sales price in real estate
Harold is a junior partner at a well established law firm. A skilled defense lawyer, Harold, or Harry as his friends call him, is as cunning as he is unscrupulous. With a bustling clientele that includes many distasteful individuals, he has amassed a small fortune and is in the market to sell his home. He finds a real estate agent and begins the process of selling his current domicile.
After some searching, Harold manages to find a buyer for his current home, a beautiful two story cape-cod style home in a quiet suburb adjacent to the city. After completing the preliminary paperwork, Harold proceeds to calculate how much he’ll receive after the sale of his home. However, misfortune befalls him.
In a twist of irony, it turns out that the real estate agency Harold chose to sell his home is as disingenuous as he is. After applying a myriad of hidden fees and costs in addition to the universal fees that must be paid after the sale of a home, Harold records a net sales price far lower than he believed he would when he began the process of selling his home.
Popular Real Estate Terms
In business, one may come across the cash accounting method, also known as cash-basis accounting, during the accounting period. The cash method of accounting is used where payments are ...
Usually a fairly large site zoned and planned for the purpose of industrial development and located outside the main residential area of a city. Industrial parks normally are provided with ...
Brick wall where a space or cavity is left between the inner and outer walls and is usually filled with insulation. ...
The term endorsement can have various meanings depending on the context. In a business transaction, the parties sign a contract about the legal transfer of a negotiable instrument in ...
Highest bid to buy and the lowest offer to sell a parcel of real estate in a particular market at a specified time. ...
Created by the US Congress in 1965, the Department of Housing and Urban Development (HUD) is the agency principally responsible for federal programs relating to housing and urban ...
The addendum definition is an attachment, clause, or section added to an agreement or contract specifying additional terms, conditions, or requirements to the original agreement or ...
Right of a current stockholder to maintain the percentage ownership in a real estate company by purchasing new shares on a proportionate basis before they are issued to the public. It ...
A shallow yet funny definition of a tax specialist is someone who loved math since 1st grade. He or she has an elephant’s memory and is always up to date with the regulations and ...
Have a question or comment?
We're here to help.