Real Estate Math
A Washington property is bought for $265,000 and sold for $310,000 two years later. After paying a 5.5% commission and $3,200 in other closing costs, what is the net profit?
A$41,750
B$34,500
C$24,750✓ Correct
D$28,750
Explanation
Sale price = $310,000. Commission = $310,000 × 5.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
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