New Jersey Real Estate Practice Exam 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: A
Rationale: To determine the seller's net amount, first calculate the total closing costs, including the brokerage fee. The brokerage fee is 5.5% of the sale price ($150,000), which amounts to $8,250. Adding the seller's closing costs of $3,500 gives total costs of $11,750. Subtracting the mortgage balance of $30,000 and total costs from the sale price results in a net amount of $150,000 - $11,750 - $30,000 = $108,250.
Option B ($109,900) incorrectly adds too much to the net after costs. Option C ($110,090) miscalculates the total fees. Option D ($116,500) fails to account for the mortgage balance, leading to an inflated net amount.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now