New Jersey Real Estate Exam Practice Question
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%?
Correct Answer: C
Rationale: To determine the seller's net proceeds, start with the sale price of $160,000. Calculate the brokerage fee at 6.5%, which amounts to $10,400 (6.5% of $160,000). Subtracting this fee from the sale price gives $149,600. Next, deduct the existing mortgage balance of $30,000 and the closing costs of $3,600. This results in a final net amount of $149,600 - $30,000 - $3,600 = $116,000.
Option A ($108,260) incorrectly assumes a higher deduction from the sale price. Option B ($109,900) fails to account for the full closing costs. Option D ($116,500) miscalculates the total deductions, leading to an inaccurate net amount.
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