Question: Madison is trying to decide whether or not it would be beneficial to employ the services of a real estate broker in order to facilitate
Madison is trying to decide whether or not it would be beneficial to employ the services of a real estate broker in order to facilitate the sale of her home. She has estimated that the marketing costs and opportunity cost associated with time spent dealing with prospective buyers amounts to $5,000. If Madison were to sell the house on her own for $200,000, but a broker would have been able to negotiate a higher price of $206,350, what commission rate should Madison have been willing to accept from a real estate broker to make her indifferent between selling the house on her own and hiring a real estate broker?
The answer is 5.5% but I need the step by step work of how to get it please provide the formulas you used as well thank youuuuu <3
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