Question

In: Finance

You are selling your house and you think it will sell for $335,000. You talk to...

You are selling your house and you think it will sell for $335,000. You talk to a real estate agent who is willing to list your house for $339,900. His fee is 6%. You currently owe $210,000 on your home.

a.	How much will the real estate agent’s fee be if you get a full price offer?

Real estate agent’s fee

b.	How much will the real estate agent’s fee be if you accept an offer for $335,000?

Real estate agent’s fee

c.	You pay off your existing mortgage and continue to use the same real estate agent.

c1.

How much money will you have for a down payment on your next house in (a)?

Down payment

c2.

How much money will you have for a down payment on your next house in (b)?

Down payment

d.	If you sell the house on your own for $335,000, how much money will you have for a down payment on your next house?

Down payment

e.	The buyer wants you to pay closing costs of $4,700 and you pay off your existing mortgage.

e1.

How much money will you have for a down payment on your next house in (a)?

Down payment

e2.

How much money will you have for a down payment on your next house in (b)?

Down payment

e3.

How much money will you have for a down payment on your next house in (d)?

Down payment

f.	You decide not to sell your house but to remodel and put on an addition. What is the equity in your house?


Equity based on the listing price	$
Equity based on the offer price	$

g.	The bank will let you borrow 70% of the appraised value of your house, which appraises at $335,000. What is the maximum home equity loan you can get?

Maximum home equity loan

Solutions

Expert Solution

jeff jeffy answered 4 weeks ago

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