A potential buyer is interested in purchasing a home that has an assumable below-market loan.The buyer determines that the financing premium associated with the below-market loan is worth $4,300.If similar houses sell for $100,000,the buyer should be willing to pay $104,300 or more for the property.

Question

Quizplus · Accepted Answer

The buyer should be willing to pay up to $104,300 for the property, not more, as the financing premium adds value to the property but does not justify paying more than the calculated premium plus the market value.

A Potential Buyer Is Interested in Purchasing a Home That