Question

A seller's costs are a $14,700 commission, $3,150 in excise tax, $650 for a buyer's policy of title insurance, $250 in escrow fees, and a $126,000 loan payoff. The seller will receive a $210,000 purchase price and a $1,050 refund on property taxes paid in advance. How much are the seller's proceeds?

Answer 1

Answer:

Seller's proceeds = $66,300

Explanation:

Given:

Seller's costs = $14,700

Commission = $3,150

Excise tax = $650

Escrow fees = $250

Loan payoff = $126,000

Purchase price receive = $210,000

Refund on property taxes paid in advance = $1,050

Computation of seller's proceeds:

Seller's proceeds = (Purchase price receive + Refund on property taxes paid in advance) -  (Seller's costs + Commission + Excise tax + Escrow fees + Loan payoff)

Seller's proceeds = ($210,000 + $1,050) - ($14,700 + $3,150 + $650 + $250 + $126,000)

Seller's proceeds = ($211,050) - ($144,750)

Seller's proceeds = $66,300