Illinois Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

To determine the selling price that allows the seller to net $180,000 after paying a broker's fee of 6%, you need to calculate the total amount the seller must receive, which includes both the net desired amount and the broker's fee.

When a property sells, the broker's fee is calculated as a percentage of the selling price. Therefore, if we let the selling price be represented as X, the broker's fee would be 6% of X, or 0.06X. The seller wants to keep $180,000 after this fee is deducted, leading to the equation:

X - 0.06X = $180,000.

This simplifies to:

0.94X = $180,000.

Next, to find the selling price (X), divide both sides of the equation by 0.94:

X = $180,000 / 0.94,

X = $191,489.36.

Rounding to the nearest dollar gives a selling price of $191,489, making this the correct answer.

Understanding the calculations involved and recognizing how to manipulate percentages is crucial in real estate transactions, especially when determining how much must be sold for a seller to achieve their financial goals after paying applicable fees