Question
3. A Seller wants to NET $200,000. They have a mortgage balance (MTG) of $100,000. To close the transaction, variable cost (VC) will be 5%
3. A Seller wants to NET $200,000. They have a mortgage balance (MTG) of $100,000. To close the transaction, variable cost (VC) will be 5% and fixed cost (FC) will equal $2,000. Create three offers as the buyer in terms of Selling Price (SP) that will NET the seller $200,000. More specifically, form your offers as:
a. NET the seller $200,000 with the seller paying all FC, VC and MTG, and the buyer paying no cost of sale. What will the Buyers total investment (TI) under this scenario be?
b. NET the seller $200,000 with the seller paying only FC and MTG, and the buyer paying all VC. What will the Buyers total investment (TI) under this scenario be?
c. NET the seller $200,000 with the seller paying the MTG, and the buyer paying all VC and FC of sale. What will the Buyers total investment (TI) under this scenario be?
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