Before you read
Test yourself first: 5 questions
Question 1 of 5
Closing is August 20 (statutory 360-day year, 30-day months; seller owns closing day). Annual taxes of $3,240 are unpaid, due at year end. The proration entry is:
Answer: A. Daily rate: 3,240 ÷ 360 = $9. Seller owned Jan 1–Aug 20 = (7 × 30) + 20 = 230 days × $9 = $2,070. Taxes in ARREARS → seller owes: debit seller, credit buyer.
Question 2 of 5
A home sells for $300,000. The seller pays a 6% commission and $4,000 in other closing costs. What is the seller's net?
Answer: A. Commission = $18,000. Net = $300,000 − $18,000 − $4,000 = $278,000.
Question 3 of 5
A seller nets $188,000 after paying a 6% commission (and no other costs). What was the sale price?
Answer: A. The seller keeps 94% of the price: price = $188,000 ÷ 0.94 = $200,000.
Question 4 of 5
A seller wants to net $94,000 after a 6% commission (no other costs). What is the minimum sale price?
Answer: A. The seller keeps 94%: price = $94,000 ÷ 0.94 = $100,000.
Question 5 of 5
HOA dues are $300/month, paid in full. At closing on the 15th of a 30-day month, the buyer reimburses the seller for the unused half-month. How much?
Answer: A. Half of the $300 month = $150 owed to the seller for the days the buyer will own.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
The tested reverse: a seller NEEDS $60,000 cash with a $210,000 payoff and $5,000 in fixed costs at 6% commission — price must satisfy P(1 − 0.06) = 60,000 + 210,000 + 5,000, so P = 275,000 ÷ 0.94 = $292,553. The classic error is subtracting 6% of the target instead of dividing by 0.94 — commission is a percentage of the PRICE, which is the unknown.
Seller's Net Sheet: FAQs
Is Seller's Net Sheet on the real estate exam?
Yes. Real Estate Math is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
