What is the amount that Sarah would clear at closing after selling property for $200,000, paying a 6% commission, and 2 points for the buyer's loan?

To determine the amount Sarah would clear at closing after selling her property, we need to calculate the deductions from the sale price related to the commission and the points charged on the buyer's loan.

First, calculate the commission on the sale. The property sells for $200,000, with a commission rate of 6%. The commission can be calculated as follows:

[

\text{Commission} = \text{Sale Price} \times \text{Commission Rate}

]

[

\text{Commission} = 200,000 \times 0.06 = 12,000

]

Next, evaluate the points that need to be paid. Points are typically calculated as a percentage of the loan amount; in this case, it's essential to clarify whether the 2 points are taken off the sale price or if they apply to the buyer's loan amount. Assuming this relates to the buyer’s loan, we calculate 2 points as follows, noting that one point represents 1%:

Assuming the full sale amount is used for the loan:

[

\text{Points} = \text{Loan Amount} \times \text{Points Percentage}

]

[

\text{Points} = 200,