Florida Real Estate Sales Associate Examination Content OutlineReal Estate MathEasy
A seller lists their property for $350,000. They agree to pay a 6% commission to the listing broker, who then agrees to split 50% of that commission with the buyer's broker. If the property sells for the listed price, how much will the buyer's broker receive?
- A$21,000
- B$10,500
- C$7,000
- D$12,250
Show answer & explanationAnswer & explanation
Correct answer: B. $10,500
First, calculate the total commission: $350,000 * 0.06 = $21,000. Then, the buyer's broker receives 50% of this total commission: $21,000 * 0.50 = $10,500.
Why the other options are wrong
- A. This is the total commission, not the buyer's broker's share.
- C. This represents an incorrect percentage or calculation error.
- D. This would be an incorrect calculation based on a misunderstanding of the split.
Commission Calculation
Real estate commission is a percentage of the sale price, often split between the listing and buyer's brokers.
- Calculated on the sale price.
- Expressed as a percentage.
- Can be split between multiple brokers.
Memory trick: Commission Cash Comes from Closing.