The net to seller calculation determines how much the seller will receive after the broker’s commission and other costs are deducted from the sales price.

The correct formula is:

Net to Seller = Sales Price × (100% - Commission Rate)

For example, if a home sells for $300,000 and the commission rate is 6%, the seller’s net before other expenses is:

$300,000 × (100% - 6%) = $300,000 × 94% = $282,000.

This formula is a required competency under the Math for Real Estate and Practical Applications unit of the Maryland pre-licensing course.