88. A property seller for $160,000. The existing mortgage balance is $30,000 and the seller's closing costs are $3,600. What should the seller net if the brokerage fee is 6.5%?
Answer: C
The seller should net $110,090.
To determine the net amount the seller should receive, we first calculate the brokerage fee and subtract it along with the existing mortgage balance and closing costs from the sale price.
A) 108,260
This option is incorrect because it underestimates the seller's net proceeds. After calculating the brokerage fee of $10,400 (6.5% of $160,000), subtracting the mortgage balance of $30,000 and closing costs of $3,600 results in a higher net amount.
B) 109,900
This option is also incorrect as it does not account for the full deductions from the sale. With the brokerage fee calculated at $10,400, the remaining amount after subtracting the mortgage balance and closing costs does not yield this net.
C) 110,090
This is the correct option. After deducting the brokerage fee of $10,400 from the sale price of $160,000, the remaining amount is $149,600. Subtracting the existing mortgage of $30,000 and the closing costs of $3,600 results in a net amount of $110,090.
D) 116,500
This option is incorrect as it suggests a higher net amount than what is achievable. The calculations involving the brokerage fee, mortgage balance, and closing costs show that the seller cannot net this amount after all deductions are made.
Conclusion
The correct net amount of $110,090 accurately reflects the seller's proceeds after accounting for the brokerage fee, mortgage balance, and closing costs. Other options fail to provide a valid calculation based on the financial details presented in the question. Thus, option C stands as the definitive answer.