In the example, Ned and Carla bought a house that was listed at 105,000 and their offer was 5,000 below the listing price. What price did they pay relative to the listing?

• A. 5,000 above
• B. 10,000 below
• C. 5,000 below
• D. At asking price

Answer: (C)

Relating an offer to the listing price means comparing the offer amount to what the home is listed for. Here, the listing is 105,000 and the offer is 5,000 below that, so the offered price is 105,000 − 5,000 = 100,000. Saying it’s 5,000 below communicates that the price paid is 5,000 less than the listing price. It’s not above the listing, nor at asking price, nor 10,000 below.