A seller agrees to pay 3 points on a $200,000 home sale. How much will this cost the seller?

To determine the cost of the points to the seller in a home sale, you calculate this based on the sale price and the number of points agreed upon. Points in real estate are typically expressed as a percentage of the loan amount or sale price.

In this case, the seller agrees to pay 3 points on a $200,000 sale. Each point is equal to 1% of the total amount, so 3 points would be 3% of the sale price. The calculation would be as follows:

1. Calculate 3% of $200,000.

2. This is done by multiplying $200,000 by 0.03 (which represents 3%).

$200,000 * 0.03 = $6,000.

Thus, the total cost to the seller for paying the 3 points on the $200,000 sale is $6,000. This demonstrates how points can significantly add to the seller's costs in a property transaction, as they are a common financing fee in real estate.