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Debra wants to net $100,000 on her house. Her closing costs will be 15,000 plus a 6% commission. She owes $310,000 on her loan. What is the minimum listing price that Debra can agree to?

a. $438,221.39
b. $425,000
c. $452,127.66
d. $452,100

User Oscar F
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1 Answer

4 votes

Final answer:

Debra needs to list her house for at least $452,127.66 to cover her mortgage, closing costs, and commission while netting $100,000. The correct option is C.

Step-by-step explanation:

The question asks us to calculate the minimum listing price that Debra can agree to so that she nets $100,000 after paying off her mortgage and covering closing costs, which include a commission. To determine this, we first need to calculate the total amount Debra will need to cover her desired net amount, closing costs, and commission.

First, add the desired net amount of $100,000 and closing costs of $15,000, which equals $115,000. Then, Debra needs to cover the amount she owes on her loan which is $310,000. This totals to $425,000 before commission. As the commission is 6% of the selling price, we can set up the equation 0.94x = $425,000, where x is the listing price. Solving for x gives us x = $425,000 / 0.94, which equals approximately $452,127.66.

Therefore, the minimum listing price that Debra can agree to is $452,127.66 to net $100,000 after paying a 6% commission and $15,000 in closing costs, and paying off her $310,000 mortgage.

User Biofractal
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