Michigan Real Estate Exam Practice Question
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%?
Correct Answer: C
Rationale: To determine the amount the seller receives, first calculate the brokerage fee, which is 6.5% of the sale price:
$150,000 x 0.065 = $9,750.
Next, subtract the brokerage fee and the seller's closing costs from the sale price:
$150,000 - $9,750 - $3,500 = $136,750.
Finally, subtract the existing mortgage balance:
$136,750 - $90,000 = $46,750.
Option C, $40,000, is incorrect because it underestimates the seller's net proceeds.
Options A and B also miscalculate the total deductions and do not reflect the correct financial outcome.
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