Question
A house is selling for
financed with a 25 -year mortgage at
in other closing costs; and the existing mortgage, with a balance of
Select one:
a.
b.
c.
d.
financed with a 25 -year mortgage at
in other closing costs; and the existing mortgage, with a balance of
Select one:
a.
b.
c.
d.
Ask by Chambers Page. in the United States
Mar 21,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The seller will receive $107,350 on the sale of the property.
Solution
Given:
- Sales price:
- Broker’s commission:
of the purchase price - Other closing costs:
- Existing mortgage balance:
Step 1. Calculate the broker’s commission:
Step 2. Compute the total deductions:
Step 3. Compute the seller’s proceeds on the sale:
Thus, the seller will receive
Answer: c.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution The Deep Dive
To determine the seller’s proceeds from the sale of the property, we can break down the costs and calculations step-by-step.
- Selling Price: $190,000
- Down Payment (25%):
- Mortgage Amount:
- Broker’s Commission (6%):
- Total Closing Costs:
- Total Deductions for Seller:
- Seller’s Proceeds:
So, the correct answer is c. $107,350.
Did you know that in the early days of real estate, transactions were often conducted without written contracts? Buyers and sellers relied heavily on verbal agreements, which could lead to misunderstandings and disputes. Nowadays, the process is much more structured, thanks to stricter regulations and the rise of technology in real estate!
If you’re venturing into real estate transactions, it’s crucial to keep a close eye on all costs involved, especially hidden ones like closing costs or commissions. Always ensure everything is documented, and consider hiring a knowledgeable real estate agent to help navigate through the intricacies of your purchase or sale!
