33. A property sells for $150,000. The existing mortgage balance is $90,000 and the seller's closing costs are $3,500. What should the seller get if the brokerage fee is 6.5%?
Answer: C
The seller should get $40,000 after all deductions.
To determine the amount the seller receives after closing costs and commissions, we calculate the total deductions from the selling price of $150,000. After deducting the mortgage balance of $90,000, closing costs of $3,500, and a brokerage fee of 6.5%, the seller ends up with $40,000.
A) $18,250
Option A is incorrect as it significantly underestimates the amount the seller would receive. When calculating the deductions, this figure does not account for the total costs associated with the sale, including the mortgage balance and brokerage fees.
B) $10,950
Option B is also incorrect as it is far too low. The calculations demonstrate that the seller would retain a greater amount after addressing all relevant costs and fees associated with the transaction.
C) $40,000
This option is correct. The seller's net proceeds, after deducting the mortgage balance, closing costs, and brokerage fees, total $40,000. This calculation aligns with the financial details provided in the question.
D) $46,500
Option D is incorrect as it overstates the amount the seller would receive. The figure does not accurately reflect the necessary deductions from the selling price, leading to an inflated net amount that does not correspond with the provided financial data.
Conclusion
The correct answer, $40,000, accurately reflects the seller's net proceeds after all deductions, including the mortgage, closing costs, and brokerage fees. All other options fail to consider the complete financial obligations stemming from the sale, leading to incorrect estimations. Thus, option C is the only choice that correctly represents the seller's actual earnings from the transaction.