Real Estate Math
A Hawaii seller owes $425,000 on their mortgage. The home sells for $680,000 with a 5% commission. What are the approximate net proceeds to the seller (before other costs)?
AA. $221,000✓ Correct
BB. $221,000
CC. $255,000
DD. $261,000
Explanation
Commission = $680,000 × 0.05 = $34,000. Net after commission = $680,000 - $34,000 = $646,000. After paying off mortgage = $646,000 - $425,000 = $221,000.
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