What are net yields?
net revenues apply to the amount of money obtained from the sale after all transactions have been deducted. The concept exists in investing, real estate and any other situation in which the item is sold and in which the sale is associated with transaction costs. It is important to calculate net revenues in determining the actual return level and profits generated by the action. For example, if an individual bought 100 shares of shares for $ 100 (USD) and then sold shares for $ 110, it would seem to earn $ 10. However, the actual amount he created would have to be reduced by the commission and the transaction fees he paid. If he was charged $ 5 for the purchase of shares and $ 5 for the sale of shares, his real net profit or sales revenues would be $ 0.
The same calculation can be done in the real estate area. An individual who sells his home must generally pay a commission and fees to a real estate agent who helps with sale. May also have to pay the costs of closing and bVolume fees associated with sale. The amount that the owner of the property thus results from the sale of the property must be calculated after the deduction of these costs. Since the commission and fees associated with the sale of a house or a piece of private property usually contribute up to six percent in the United States - three percent to the buyer agent and three percent for the seller agent - net yield can actually be significantly reduced by transaction costs and fees.
In general, it is reasonable that the lower the transaction costs associated with the sale, the easier it is to have a higher net profit or net yield. In other words, an individual may be better to find a real estate agent who was willing to work at a lower payment rate to reduce his transaction costs and have more revenues from the sale. LikewiseFrom and fees, increase transaction costs and reduce the actually realized profit. The advantage of higher transaction costs must always be considered against the damage to the use of a lower cost service to determine the best procedure.