Purchase price = Today's Zillow Zestimate 521500 You will pay a down payment = 15% of purchase price 78225 Mortgage payments = 30 year fixed loan at 3.8% interest (Loan = 85% of purchase price) 2077 Fees to purchase the home = 5% of the purchase price 26075 Property taxes are paid all 5 years at the 2019 property tax rate 17890 Insurance for the home is $1,000/year 5000 The selling price = purchase price * (1+ (% Value (price) estimate change of the last 5 years)  (note: this is different process than what is outlined in the video) Fees to sell the home = 5% of the selling price. I need help finding the selling price of this home.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 19E
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Question: 1533 Ontario St SE, Olympia, WA 98501 Purchase price = Today's Zillow Zestimate   ...

 

1533 Ontario St SE, Olympia, WA 98501

Purchase price = Today's Zillow Zestimate 521500
You will pay a down payment = 15% of purchase price 78225
Mortgage payments = 30 year fixed loan at 3.8% interest (Loan = 85% of purchase price) 2077
Fees to purchase the home = 5% of the purchase price 26075
Property taxes are paid all 5 years at the 2019 property tax rate 17890
Insurance for the home is $1,000/year 5000
The selling price = purchase price * (1+ (% Value (price) estimate change of the last 5 years)  (note: this is different process than what is outlined in the video)

Fees to sell the home = 5% of the selling price.

I need help finding the selling price of this home.

Expert Solution
Step 1

The purchase price is the price at which the asset is available for the customers to purchase. Down payment refers to the initial payment, which is paid immediately to the asset holder as the first payment. Then, the balance payment can be paid in installments or it can be paid by taking a loan. Property taxes are taxes paid as per the required guidelines. 

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