What is the exam-ready distinction?
| Roadmap post | 221 of 500 |
|---|---|
| Official syllabus topic | Real Estate Calculations: Seller Proceeds, Buyer Cash, Debits, and Credits |
| Official PSI area | Real Estate Calculations |
| Published weight | 7% of the 100-question national portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Content checked through | August 2, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual comparison. Use the source, document, actor, event, and timing stated in the question before applying a memorized definition.
Side-by-side comparison
Read across each row. The terms are deliberately compared on identical dimensions so the difference remains clear when the exam hides the vocabulary inside a scenario.
| Decision dimension | Seller net | Buyer funds needed |
|---|---|---|
| Starting point | Sale price and seller credits | Purchase price, loan, and buyer-side credits or deposits |
| Subtract | Mortgage payoff, commission, seller costs, taxes, prorations, and agreed credits | Loan proceeds, earnest money already paid, seller or lender credits, and other buyer credits |
| Add | Seller credits and amounts owed to seller | Down payment, buyer closing costs, prepaid items, and buyer debits |
| Question result | Proceeds payable to seller | Cash the buyer must bring through approved funds |
Decision rule
Georgia-specific distinction
Worked example
Scenario. A property sells for $400,000. The seller owes a $250,000 payoff, a 5 percent commission, and $6,000 in other seller costs. No other credits or debits apply.
Reason it through. Commission is $20,000. Subtract $250,000, $20,000, and $6,000 from the $400,000 sale price.
Answer. The seller net is $124,000.
Common exam traps
- Mixing buyer and seller columns
- Counting earnest money twice
- Ignoring the loan payoff in seller net
- Using a sale-price percentage for a fixed closing charge
Original practice questions with detailed explanations
These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Which item is normally subtracted when computing seller net?
- A. The buyer's loan proceeds
- B. The seller's mortgage payoff
- C. The buyer's income
- D. The property's appraised value
Show answer and explanation →
Answer: B. The seller's mortgage payoff
The seller's mortgage payoff is correct. Seller net is the sale proceeds left after seller debits such as payoff, commission, taxes, costs, and credits. Buyer funds needed are the buyer's debits and required investment minus loan proceeds, deposit, and other credits. Keep the parties and cash direction separate before calculating. The remaining options, The buyer's loan proceeds; The buyer's income; The property's appraised value, do not match the controlling category or fact.
Question 2A property sells for $400,000. The seller owes a $250,000 payoff, a 5 percent commission, and $6,000 in other seller costs. No other credits or debits apply.
- A. The buyer must bring $124,000.
- B. The seller net is $144,000 because commission is ignored.
- C. The seller net is $124,000.
- D. The seller net is $380,000 because payoff is a buyer debit.
Show answer and explanation →
Answer: C. The seller net is $124,000.
Commission is $20,000. Subtract $250,000, $20,000, and $6,000 from the $400,000 sale price. The supported conclusion is: The seller net is $124,000. The other choices replace those controlling facts with a neighboring concept or an unsupported absolute rule.
Question 3What should a candidate identify first when comparing Seller Net Versus Buyer Funds Needed at Closing?
- A. The option with the longest definition, without classifying the facts.
- B. A memorized Georgia rule, even when the question asks for a national concept.
- C. The answer that sounds most favorable to one party, regardless of the document or event.
- D. Label every amount buyer debit, buyer credit, seller debit, or seller credit, then total only the side the question asks for and avoid counting a deposit twice.
Show answer and explanation →
Answer: D. Label every amount buyer debit, buyer credit, seller debit, or seller credit, then total only the side the question asks for and avoid counting a deposit twice.
Label every amount buyer debit, buyer credit, seller debit, or seller credit, then total only the side the question asks for and avoid counting a deposit twice. That sequence identifies the legal category before the label. Definition length ignores the facts, jurisdiction confusion answers a different question, and sympathy cannot replace the document, event, calculation, or governing rule.
Mastery tracking
Mark this distinction mastered only when every statement is true.
- Define every compared term without using the other term as the definition.
- Rebuild the comparison table from memory.
- State the decision rule and Georgia distinction without notes.
- Solve the worked example after changing one controlling fact.
- Explain why every trap and distractor is tempting but wrong.
- Answer all three original questions correctly in mixed practice on a later day.
Recommended next lesson
Continue with Potential Gross Income Versus Effective Gross Income Versus NOI. Continue to roadmap comparison 222.
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