Real Estate Math
A Massachusetts seller agrees to pay 6% commission plus $1,500 for staging costs. If the property sells for $580,000, what are the total seller's costs for these two items?
A$36,300✓ Correct
B$34,800
C$35,300
D$37,800
Explanation
Commission = $580,000 × 6% = $34,800. Total = $34,800 + $1,500 = $36,300.
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Key Terms to Know
Amortization
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
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