The owner of a property listed at $195,000 is considering two offers. Mr. and Mrs. Sharpe are offering $191,000 cash. The Conlins' "full-price" offer consists of $65,000 cash and a mortgage back to the vendor for $130,000 at a rate of 7.5% compounded semi-annually with payments of $1,000 per month for a five-year term. If current five-year rates are 8.5% compounded semi-annually, what is the equivalent cash value of the Conlins' offer? Which offer should be accepted?

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The Answer of The owner of a property listed at $195,000 is considering two offers. Mr. and Mrs. Sharpe are offering $191,000 cash. The Conlins' "full-price" offer consists of $65,000 cash and a mortgage back to the vendor for $130,000 at a rate of 7.5% compounded semi-annually with payments of $1,000 per month for a five-year term. If current five-year rates are 8.5% compounded semi-annually, what is the equivalent cash value of the Conlins' offer? Which offer should be accepted?

The Owner of a Property Listed at $195,000 Is Considering