Question

A home sells for $125,000 in United County. The Realtor’s commission is 7.4%, and the mortgage balance is $98,000. The seller has $5,900 in other closing costs. If the seller pays all of these expenses, what will she net at closing?

Answer 1

Answer:

$11,850

Explanation:

A  home sells for $125,000

Realtor's commision is 7.4%

Mortgage balance is $98,000

The seller has $5,900 from other closing costs.

Therefore, her net at closing will be the deduction of all from the amount she sold the house.

Firstly, Realtor's commision =7.4% of $125,000

=7.4% x $125,000

=0.074x$125,000

=$9,250

Seller's Balance=House cost - realtor's commision

= $125,000 - $9250

=$115,750

Secondly, Seller's Balance-Mortgage's balance

= $115,750 - $98,000

= $17,750

L:astly, Net at closing= House cost - closing cost

= $17,750 - $5,900

= $11,850