57. A property sells for $150,000. The existing mortgage balance is $30,000 and the seller's closing costs are $3,500. What should the seller net if the brokerage fee is 5.5%?
Answer: A
The seller should net $108,250.
To determine the seller's net amount, we first calculate the total deductions from the sale price, which include the brokerage fee, the existing mortgage balance, and the closing costs.
A) $108,250
This option is correct. To find the net amount, we calculate the brokerage fee of 5.5% on the sale price of $150,000, which equals $8,250. Subtracting the brokerage fee ($8,250), the existing mortgage balance ($30,000), and the closing costs ($3,500) from the sale price results in a net amount of $150,000 - $8,250 - $30,000 - $3,500 = $108,250.
B) $109,900
This option is incorrect. Although this amount is close to the correct net figure, it does not account for the correct calculations of the brokerage fee and other deductions. Therefore, it does not reflect the actual net proceeds from the sale.
C) $110,090
This option is also incorrect. Similar to option B, this figure does not accurately represent the seller's net proceeds after deducting the brokerage fee, mortgage balance, and closing costs. The calculations do not align with the figures provided in the question.
D) $116,500
This option is incorrect as well. It does not consider the necessary deductions from the sale price. This figure suggests a higher net gain that does not correspond to the correct deductions for the brokerage fee, mortgage balance, and closing costs.
Conclusion
The correct answer of $108,250 is derived from a precise calculation of the seller's total deductions, including the brokerage fee, remaining mortgage balance, and closing costs. All other options fail to reflect the actual net proceeds by either miscalculating one or more deductions or failing to account for the total sale price accurately. Thus, option A is definitively correct based on the provided financial details.