Florida Real Estate Broker ExaminationReal Estate CalculationsEasy
A buyer is purchasing a property for $350,000. The seller has agreed to pay 2.5% of the sales price towards the buyer's closing costs. What is the dollar amount the seller will contribute?
- A$8,750
- B$10,000
- C$9,250
- D$7,500
Show answer & explanationAnswer & explanation
Correct answer: A. $8,750
To calculate the seller's contribution, multiply the sales price by the agreed-upon percentage. $350,000 x 0.025 = $8,750.
Why the other options are wrong
- B. This would be incorrect if the percentage was 2.86% (not 2.5%).
- C. This would be incorrect if the percentage was 2.64% (not 2.5%).
- D. This would be incorrect if the percentage was 2.14% (not 2.5%).
Seller Contribution
Funds a seller agrees to pay towards a buyer's closing costs, often expressed as a percentage of the sales price.
- Reduces buyer's out-of-pocket expenses.
- Negotiated during the purchase agreement.
- Commonly used to incentivize buyers or cover specific costs.
Memory trick: Seller's share is a slice of the sales pie.