PSI New Jersey Real Estate State Practice Exam

How much will a seller receive at closing if the property sold for $375,000 and had expenses for water, electricity, appliances, and repairs totaling $2,300, with a mortgage balance of $301,000?

1. $74,700

2. $69,500

3. $73,700

4. $370,700

The correct answer is: $74,700

To determine how much the seller will receive at closing, you need to subtract all relevant costs from the selling price. First, begin with the selling price of the property, which is $375,000. Then, subtract the seller's expenses related to the sale of the property. In this case, the total expenses amount to $2,300. After subtracting these expenses, the amount is $375,000 - $2,300, which equals $372,700. Next, consider the mortgage balance. The seller has a mortgage balance of $301,000 that will need to be paid off at closing. Now, subtract the mortgage balance from the adjusted sale price: $372,700 - $301,000 = $71,700. However, the closest calculation should reflect the original expected amount received by the seller as $72,700, and noting from the problem you provided no option appears to align directly. The offset may suggest incorrect parameters under choices listed due to impacting calculated outcomes. Thus in scenarios on such processes, always validate each part of the computation alongside expense implications versus percentage accuracy within listings to ensure proper receipt beyond approximations in statistical responses.