Question

A seller's costs are a $23,400 commission, $396 in documentary transfer tax, $650 for a buyer's policy of title insurance, $250 in escrow fees, and a $246,000 loan payoff. The seller will receive a $360,000 purchase price and a $350 refund on property taxes paid in advance. How much are the seller's proceeds

Answer 1

The seller's proceeds is $89,654.

Step-by-step explanation:

The seller's proceed is the difference between the total inflows and the out flows. This can be calculated as follows:

Particulars $ $

Inflows:

Purchase price or sales proceeds 360,000

Refund on property tax in advance 350

Total inflows 360,350

Outflows:

Commission (23,400)

Documentary transfer tax (396)

buyer's policy of title insurance (650)

Escrow fees (250)

Loan payoff (246,000)

Total outflows (270,696)

Proceeds 89,654

Therefoe, the seller's proceeds is $89,654.