A property is listed for $580,000. The listing agreement promises to pay a 7% commission. A buyer makes an offer of $547,000 on May 4th
and gives a $2,000 deposit. The offer is accepted with no change on
May 8th and a closing date is set for June 5th. The day of closing goes
to the buyer. Taxes for the property are $5309 and are paid in arrears.
The buyer will pay for the inspection at closing $280.00 and the seller
will pay for a home warranty in the amount of $360.00. The mortgage
remaining is $480,000. Using the 365 day method, what will the seller
net?
$506,095
$544,386
$26,096
$26,085.00

$26,096

Step-by-step explanation:

property taxes = 31 January + 28 February + 31 March + 30 April + 31 May + 4 June = 155 days

property taxes = (155 days/365 days) x $5,309 = $2,254

agent's commission = 7% x $547,000 = $38,290

seller's net = $547,000 - $480,000 (mortgage) - $38,290 (agent's commission) - $360 (home warranty) - $2,254 (property taxes) = $26,096

26,096

Step-by-step explanation:

Proration using 365-day method:

Buyer days are June - December 210 days (June 30 + July 31 + August 31 + September 30 + October 31 + November 30 + December 31 - June 4 days)

Seller days are January - June 155 days (January 31 + February 28 + March 31 + April 30 + May 31 + June 30 - June 26 days)

Formula with closing day to buyer: 210/365 x $5,309 = $3,054.49 --> $5,309 - $3,054.49 = $2,254.51 property taxes

Commission:

$547,000 sale price x .07 commission fee = $38,290 commission

Seller Net:

$547,000 sale price - $480,000 mortgage = $67,000 - $38,290 commission = $28,710 - $360.00 home warranty = $28,350 - $2,254.51 = $26,096

x -

median = 1.25

range = 12-14.5

interquartile = q12-q14.5

y -

median = 1

range = 15-17

interquartile = q15-q17

step-by-step explanation:

answers available in this download

(pearson%2c%25202012)%2520bbs.pdf& usg=aovvaw1obmtxnfghfgxhx0urh_je