Methodology / Glossary / Sales Costs

Sales Costs

All expenses associated with selling completed units, including agent commissions, legal fees, marketing costs, and show home expenses. Typically expressed as a percentage of GDV.

Why it matters

Sales costs reduce GDV to NDV. Forgetting to include them overstates profit by the full amount of these fees.

In Profivo

Entered as a percentage or fixed amount in the Revenue section and deducted automatically.

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