National Real Estate Exam (PSI)Real Estate CalculationsHard
A property sells for $415,000. Total commission is 6%, split 50/50 between the listing and selling brokerages. The listing agent gets 60% of the listing brokerage's share, and the selling agent gets 70% of the selling brokerage's share. How much more does the selling agent earn than the listing agent?
- A$2,490
- B$1,868
- C$623
- D$1,245
Show answer & explanationAnswer & explanation
Correct answer: D. $1,245
Total commission = $415,000 × 6% = $24,900. Each side's share = $12,450. Listing agent = $12,450 × 60% = $7,470. Selling agent = $12,450 × 70% = $8,715. Difference = $8,715 − $7,470 = $1,245.
Why the other options are wrong
- A. This equals 10% of the total per-side commission, not the actual difference.
- B. This overstates the difference by mixing up percentages.
- C. This is half the correct difference.
Comparing Agent Splits
When two agents have different split percentages with their brokerages, their final earnings must be calculated separately before comparing.
- Calculate each side's brokerage share first
- Apply each agent's individual split percentage
- Subtract to find the difference between amounts
Memory trick: Two agents, two splits, compare at the end