Real estate headache math

[dsnowden]

. A property was listed for $96,000 with ABC Real Estate Company. The seller agreed to pay ABC a flat fee of $5,500 at closing if they or any other company procured a buyer. The seller's loan balance after the June 1st payment was $39,360 at an interest rate of 10%. The lender is demanding interest from the seller through the date of settlement, June 15. The closing is set for June 15. Taxes for the year are $600.00, and they are paid in arrears and prorated at closing. The agreed-upon purchase price was $94,000.00. How much will the seller net from this transaction? Assume the 360-day method for prorating interest, and the 365-day method for prorating taxes. Also, assume the seller owns the day of closing.

 

[stapel]

A property was listed for $96,000 with ABC Real Estate Company.

The seller agreed to pay ABC a flat fee of $5,500 at closing if they or any other company procured a buyer.

The seller's loan balance after the June 1st payment was $39,360 at an interest rate of 10%. The lender is demanding interest from the seller through the date of settlement, June 15. The closing is set for June 15. Taxes for the year are $600.00, and they are paid in arrears and prorated at closing.

The agreed-upon purchase price was $94,000.00.

How much will the seller net from this transaction? Assume the 360-day method for prorating interest, and the 365-day method for prorating taxes. Also, assume the seller owns the day of closing.

What are your thoughts? What have you tried? What formulas or methods have they given you in your class? How far have you gotten in applying them? Where are you stuck?

Please be complete. Thank you!