Real Estate Math

A Hawaii seller's net sheet shows: Sale price $780,000, existing mortgage $340,000, 5% commission, $6,500 closing costs. What are the seller's net proceeds?

AA. $394,500✓ Correct
BB. $394,500
CC. $394,000
DD. $389,000

Explanation

Commission = $780,000 × 5% = $39,000. Total deductions = Mortgage ($340,000) + Commission ($39,000) + Closing costs ($6,500) = $385,500.

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