National Real Estate Exam (PSI)Real Estate CalculationsEasy
A home sells for $250,000. The total commission rate is 6%, split 50/50 between the listing and selling brokerages. The listing agent receives 60% of the listing brokerage's share. How much does the listing agent earn?
- A$7,500
- B$4,500
- C$3,600
- D$9,000
Show answer & explanationAnswer & explanation
Correct answer: B. $4,500
Total commission = $250,000 × 6% = $15,000. Listing brokerage's half = $7,500. Agent's 60% share = $7,500 × 0.60 = $4,500.
Why the other options are wrong
- A. This is the full listing brokerage share before the agent split.
- C. Too low; miscalculates the percentage split.
- D. This equals 60% of the full $15,000, ignoring the 50/50 brokerage split.
Commission Split Calculation
Total commission is first split between brokerages, then each brokerage splits its share with its agent.
- Total commission = sale price × commission rate
- Split between brokerages first, then between agent and broker
- Work from the total down to the individual's share step by step
Memory trick: Total pie, cut in half, cut again for the agent