Sales price is $292k, buyer is putting down 20%, and seller is paying 4% for the buyer's closing costs. How much is the seller paying for the buyer's costs?

Sales price is $292k, buyer is putting down 20%, and seller is paying 4% for the buyer's closing costs. How much is the seller paying for the buyer's costs?

• A. 10,000
• B. 11,680
• C. 12,500
• D. 15,000

Answer: (B)

To find out how much the seller is paying for the buyer's closing costs, you first need to determine the total amount of the closing costs based on the sales price of the property. In this case, the sales price is $292,000. The seller is paying 4% of this amount toward the buyer's closing costs. To calculate the total amount the seller is contributing, you multiply the sales price by the percentage allocated for closing costs: 0.04 (which represents 4%) multiplied by $292,000 equals $11,680. This calculation shows that the seller will pay $11,680 toward the buyer's closing costs, making this the correct choice. Understanding this calculation involves recognizing both the relationship between the sales price and the percentage that represents the closing costs being covered by the seller, which helps in real estate transactions.

To find out how much the seller is paying for the buyer's closing costs, you first need to determine the total amount of the closing costs based on the sales price of the property.

In this case, the sales price is $292,000. The seller is paying 4% of this amount toward the buyer's closing costs. To calculate the total amount the seller is contributing, you multiply the sales price by the percentage allocated for closing costs:

0.04 (which represents 4%) multiplied by $292,000 equals $11,680.

This calculation shows that the seller will pay $11,680 toward the buyer's closing costs, making this the correct choice. Understanding this calculation involves recognizing both the relationship between the sales price and the percentage that represents the closing costs being covered by the seller, which helps in real estate transactions.