Real Estate Math
A property sells for $260,000. Closing costs are 2% of the sale price. The seller has a mortgage payoff of $185,000. What are the seller's net proceeds?
A$65,200
B$69,800✓ Correct
C$70,200
D$75,000
Explanation
Closing costs = $260,000 × 2% = $5,200. Net proceeds = $260,000 − $185,000 − $5,200 = $69,800. To solve this, multiply the relevant values: $260,000 and $185,000 at 2%.. The correct answer is $69,800.. This is a common calculation on the Idaho real estate exam.
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