A broker doesn't have a listing but shows a property. If someone receives a $100,000 offer on the property, what is the price the borrower paid for the property?

Rationale

$68,800

The borrower paid $68,800 for the property, which is the correct answer based on the context of the question. This price reflects the actual transaction amount that the broker would recognize for the property shown, despite not having a formal listing.

A ($64,500) YOUR ANSWER

This amount does not accurately reflect the typical transaction price for properties in a competitive market. It may represent a lower bid that would likely be rejected or not fully align with market values, thereby making it an unlikely price for a property receiving a substantial offer.

B ($62,200) YOUR ANSWER

Like option A, this price is too low to represent the market value of a property that garners a $100,000 offer. Such a low offer could indicate a distressed sale or an undervalued property, which is not supported by the context of receiving a significant offer.

C ($68,800) CORRECT

This is the correct price the borrower paid for the property. It indicates a reasonable and competitive price that aligns with the offer received and reflects market conditions adequately.

D ($300,000) YOUR ANSWER

This option is excessively high and unrealistic given the context of receiving only a $100,000 offer. Such a discrepancy between the offer and the price would not typically occur unless there were exceptional circumstances influencing the property’s value.

Conclusion

In real estate transactions, the price paid for a property is crucial in understanding market dynamics and the value perceived by both buyers and sellers. In this scenario, the borrower paid $68,800, which reflects a reasonable price in relation to the $100,000 offer received. The other options suggest either undervalued or unrealistic scenarios, emphasizing the importance of accurate pricing in property transactions.

A broker doesn't have a listing but shows a property. If someone receives a $100,000 offer on the property, what is the price the borrower paid for the property?

$68,800

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