Real Estate Math
An Iowa buyer making a $185,000 offer requests a $3,500 seller concession toward closing costs. The seller counters at $183,000 with no concession. Which is the lower net cost to the seller?
AThe buyer's offer ($185,000 less $3,500 = $181,500 net to seller)
BThe seller's counter ($183,000 net to seller)✓ Correct
CThey are equal
DCannot be determined without knowing commission
Explanation
Buyer's offer net to seller = $185,000 - $3,500 concession = $181,500. Seller's counter net = $183,000. The seller's counter at $183,000 yields $1,500 more to the seller than accepting the original offer with the concession.
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