Having trouble understanding something

[Grayson Grzybowski]

Can someone break down what the purchase price of a home is?

A) If a house cost 325000 and I go get a loan from the back for that much, is that the purchase price? 

B) Is the purchase price the cost of the home after the down payment and closing?

C) Is the purchase price just the amount I put down plus closing?

Thanks

[Nathan Gesner]

Quote from @Grayson Grzybowski:

List price: the price the property is advertised for. 

Purchase price: the price you actually pay for it. You may end up paying more or less than the list price for the house, depending on negotiations.

A home is advertised (list price) for $300,000. You make an offer of $290,000 and the Seller counters back with $295,000. You agree to that price. During the inspection you notice the roof is leaking in the detached garage, so you ask the Seller to reduce the price $2,500 to help with replacement and he agrees. Now your purchase price is $292,500.

Once the purchase price is determined, the bank will tell how much you need to pay up front as a downpayment. If your loan requires 5% of the purchase price then you'll put down $14,625 and you will get a loan from the bank for the remaining $277,875.

Purchase price: $292,500

Downpayment: $14,625

Mortgage: $277,875