What amount would Sarah clear at closing if she sold a property for $200,000 with a 6% commission and 2 points for the buyer's loan based on a 90% loan?

To determine how much Sarah would clear at closing from the sale of her property, we need to calculate the commissions and the costs associated with the buyer's loan first.

The selling price of the property is $200,000. A 6% commission on this sale amounts to $12,000, calculated as follows:

6% of $200,000 = 0.06 × 200,000 = $12,000.

This commission is deducted from the sale price since it is paid to the real estate broker.

Next, we need to consider the buyer's loan. The buyer is obtaining a loan that covers 90% of the property's sale price. This loan amount is calculated as:

90% of $200,000 = 0.90 × 200,000 = $180,000.

The points associated with the loan are 2 points, which equates to 2% of the loan amount. Therefore, the cost of the points the buyer needs to pay at closing is:

2% of $180,000 = 0.02 × 180,000 = $3,600.

This cost is typically a part of the transaction but can affect how much Sarah would take home if we are also