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
A stated of years. The length of time something is effective, such as a two-year rental. A condition specified in an agreement. An example is that the tenant must not have a cat in ...
Marketing attractive space at the appropriate location at a good time in the correct square footage at a reasonable price or rental charge. An example is the renting out of space for retail ...
Under law, a warranty in effect even if not expressly stated. It provides that real property sold is warranted to be appropriate for sale and is in proper condition even if not stated, ...
The basic home inspection definition is well-known for everyone, right?However, when it comes to real estate, the term “inspection” can serve a bunch of purposes – but the ...
A collection of packaged residential mortgage loans for sale in the secondary mortgage market to investors. Companies with mortgage pools expect to earn a short-term profit and use the ...
The definition of a census-designated place or CDP is rather complex and difficult to understand. We are going to try to explain it as much as possible. Starting from the top and working ...
Locating a structure after considering such factors as the homeowner's desired privacy, noise, wind, and sunlight. Position of a structure on a specific location relative to ...
Income derived from a collection of asset investments. Real property investments produce rental and lease payment income. Investments in mortgages and other long term debt instruments ...
In order to define allotment, we have to take into consideration what it refers to. While generally, it refers to a certain amount of something that is allocated to a particular person, the ...
Have a question or comment?
We're here to help.