House sale

[empip]

My friend Jane purchased her house for £214,772.
She has decided to sell... She requires a profit of 10%.
I will conduct that business for her, charging 5.5% commision on the sale.
For how much should I sell the house in order to satisfy her profit and my commision?
Answer to the nearest grand will do for me.

 

[gcol]

£214,772 x 1.1 = £236,249.20
£236,249.20 x 1.055 = £249,242.91
"For how much should I sell the house in order to satisfy her profit and my commision??" £249K then????

 

[Doc Lenny]

£250K

 

[gcol]

To the nearest grand? Rounded down?

 

[Doc Lenny]

250000 - 5.5% = 236250
214772 + 10% = 236249.2

 

[Spark123]

Depends how you look at it, if Jane wants 10% of the selling figure as profit and Mr empip wants an additional 5.5% then:
10% + 5.5% = 15.5%, expressed as a decimal = 0.155
Selling price = cost / (1-markup).
£214,772 / (1 - 0.155) = £25,4168.05

As a check, Mr empip wants his 5.5% of the selling figure which is £13,979.24, Jane wants her 10% which is £25,416.81.
The house was originally valued at £214,772.
£214,772+£25,416.81+£13,979.24=£254,168.05

So £254,168 to the nearest £1k is £254,000

 

[Trazor]

£214,772 + 10% = £236249.2

£236249.2 is 94.5% of the total required

Therefore £236249.2/94.5 = £2499.9915 x 100 = £249999.15

£250,000 all but 85p

Working backwards, empip gets exactly 5.5% commision, whilst jane makes her 10% profit.

Doc Lenny was spot on.

 

[big-all]

complicated by home buyers pack and any other fees
are you fees inclusive of any cost incurred from any direction to make shure of the sale!!!!!!!

what about negotiation for £2.000 to repair x y or z for example

 

[Doc Lenny]

I suppose the question is: You can try to sell it for as much as you want, maybe you need the sold value + HIPS + Comm + Neg fees etc...

 

[empip]

£250,000 is correct (nearest grand).

£214,772 x 1.1 = £236,249.20 Jayne's return.
This must be 94.5% of the selling price due to my 5.5% commision.
Therefore...
Selling price x 0.945 = £236,249.20
Rearrange
Selling price = £236,249.20 ÷ 0.945 = £249,999.15

Check.
Sell for............£249,999.15 (becoming £250,000 to nearest £1,000)
Less 5.5%........£13,749.95 My commision satisfied.......................£13,749.95 ÷ £249,999.15 = 0.055 or 5.5%
==================
.....................£236,249.20 Jayne's return.
Less..............£214,772.00
==================
.......................£21,477.20 Jayne's profit satisfied. .......................£21,477.20 ÷ £214,772.00 = 0.1 or 10%

Bit of an awkward one that. 1.1 x 1.055 or 1.1 + 0.055 not correct.
Tis 1.1 x 0.945^-1= 1.164...
Comission is as stated - on the sale. Not her return.