Real Estate Math

A seller accepts an offer of $245,000 on a home. The seller owes $178,000 on their mortgage and will pay a 6% commission and $2,400 in other closing costs. What is the seller's approximate net proceeds?

A$50,300
B$50,000
C$49,900✓ Correct
D$54,600

Explanation

Commission = $245,000 × 6% = $14,700. Net = $245,000 − $178,000 − $14,700 − $2,400 = $49,900.

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