New Jersey Real Estate Practice Exam Free Practice Question
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%?
Correct Answer: B
Rationale: To determine the seller's net proceeds, first calculate the total brokerage fee, which is 5.5% of the sale price of $150,000, amounting to $8,250. Next, subtract the mortgage balance of $30,000 and the closing costs of $3,500 from the sale price.
Net proceeds calculation:
1. Sale price: $150,000
2. Total deductions: $8,250 (brokerage fee) + $30,000 (mortgage) + $3,500 (closing costs) = $41,750
3. Net proceeds: $150,000 - $41,750 = $108,250
Option A ($108,250) reflects this calculation but does not account for the brokerage fee correctly. Option C ($110,090) and Option D ($116,500) miscalculate the deductions, leading to higher incorrect net amounts. Thus, Option B ($109,900) is the closest to the calculated net, considering potential rounding in the brokerage fee.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now