The cash equivalent value of a house that sold with favorable financing is usually less than its sale price.

Question

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When a house sells with favorable financing, such as a low-interest rate loan or seller-financed mortgage, the sale price may be inflated to reflect these benefits. However, the cash equivalent value of the house, meaning the value of the house if it were sold for cash instead of with financing, is typically less than the sale price. This is because the sale price is often influenced by the terms of the financing, rather than just the value of the property itself.

The Cash Equivalent Value of a House That Sold with Favorable