Mathematics, 15.02.2020 00:19 pesinaic
Real estate deals usually have substantial transaction costs. Realtor�s fees average 6% and are paid by the seller. Loan origination fees, title insurance fees, etc., will often cost the buyer 1.5%. These closing costs must be apportioned between the buyer and the seller�for the property purchase and for its later sale. How should the property's value at the horizon be determined? What is it?
Purchase price now
$144,000
Purchase Price Later
$160,000
Property Taxes 1.8%
$2,592
Property Taxes 1.8%
$2,880
Insurance
$1,030
Insurance estimated
$1500
Answers: 3
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