Final answer:
Sarah sold the property for $200,000 and agreed to pay a 6% commission and 2 points for the buyer's loan as concessions based on a 90% loan. After calculating the commission and concessions, Sarah would clear $184,400 at closing.
Step-by-step explanation:
To calculate what Sarah would clear at closing, we need to determine the total commission and concessions she agreed to pay. In this case, Sarah sold the property for $200,000 and agreed to pay a 6% commission as well as 2 points for the buyer's loan as concessions based on a 90% loan.
First, let's calculate the commission. 6% of $200,000 is $12,000.
Next, let's calculate the concessions. 2 points on a 90% loan means Sarah would be paying 2% of the loan amount as concessions. Since the loan is 90% of $200,000, the loan amount is $180,000. 2% of $180,000 is $3,600.
To determine what Sarah would clear at closing, we subtract the commission and concessions from the sale price. $200,000 - $12,000 - $3,600 = $184,400.