You are selling your house and you think it will sell for $280,000. You talk to a real estate agent who is willing to list your house for $284,900. Her fee is 5%. You currently owe $100,000 on your home.

a. How much will the real estate agents fee be if you get a full price offer?

b. How much will her fee be if you accept an offer for $280,000?

c. After you pay off your existing mortgage:

c-1. Assume that you are able to sell your house for the list price of $284,900. How much will you have to cover the down payment, taxes, and fees of your new house?

c-2. Assume that you accept an offer for $280,000. How much money will you have to put toward a down payment, taxes, and fees?

d. If the buyer wants you to pay closing costs of $3,600:

d-1. how much money will you have for a down payment on your next house if you get a full price offer of $284,900?

d-2. how much money will you have for a down payment on your next house if you accept an offer for $280,000?

e. You decide not to sell your house but to remodel and put on an addition. What is the equity in your house given a $280,000 appraised value?

f. The bank will let you borrow 80% of the appraised value of your house, which appraises at $280,000. What is the maximum home equity loan you can get?