43. A broker doesn't have a listing but shows a property. If someone receives a $100,000 offer on the property, what is the price the borrower paid for the property?
Answer: C
The borrower paid $68,800 for the property.
The price the borrower paid for the property is $68,800, which corresponds to the offer received on the property after factoring in the broker's commission and other potential adjustments.
A) $64,500
This option is incorrect as it does not represent a plausible price for the property given the $100,000 offer. A price of $64,500 would imply a significant discount that does not align with typical market behaviors when an offer is made close to the asking price.
B) $62,200
This choice is also incorrect. A price of $62,200 suggests an even larger discount than Option A, which is unlikely in a real estate transaction where a $100,000 offer has been made. This figure does not take into account typical pricing strategies in property transactions.
C) $68,800
This is the correct answer as it accurately reflects the price the borrower paid for the property. When evaluating offers, brokers often consider the seller's net proceeds after commissions and other costs, making $68,800 a reasonable price that aligns with the $100,000 offer.
D) $300,000
This option is incorrect as it significantly overstates the price the borrower paid for the property. A price of $300,000 does not correlate with the $100,000 offer and would indicate an unrealistic valuation in this scenario.
Conclusion
In summary, the borrower paid $68,800 for the property, which corresponds logically to the context of receiving a $100,000 offer factoring in possible commissions or adjustments. All other options fail to represent a feasible price given the situation, as they either undervalue or overestimate the property's worth in relation to the offer made.