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
Beam, girder, or truss with the top portion being in the shape of a bow and the bottom portion being straight across and connecting both ends of the top portion. ...
A measure of actual starts of houses, condominiums, and apartment construction. When an economy is going to take a downturn, the housing sector is the first to decline. The strength in ...
You’ll find the most common definition and use of the term ‘perimeter’ in mathematics, more precisely geometry, to determine an item’s or land’s surface area. ...
Any walls constructed without using concrete or mortar. Drywall materials include sheetrock, gypsum, plywood, Styrofoam, and pressed fiver. See also drywall construction. ...
Another residence in addition to the main residence where a person or family resides. An example is a second home out of the city used on weekends and during vacations. Interest and real ...
Early American architectural housing style stressing a gambrel roof and overhanging eaves. ...
Adobe construction is one of the oldest types of construction that has been used in the Americas, ancient Egypt, and the Middle East to build long-lasting structures that can be seen even ...
An deir to an individual who died intestate and is entitled, under the distribution statute, to a portion of its proceeds. After all claims against the estate are satisfied, the ...
Homes with division of ownership or use of a resort unit on the basis of time periods. For example, a resort home may be divided into 25 time shares of two weeks each, with two weeks left ...
Have a question or comment?
We're here to help.