Question

A seller listed a home for $200,000 and agreed to pay a commission rate of 5%. The MLS stated that the commission would be shared between the listing office and the selling office on a 50-50 basis. The home was sold four weeks later for 90% of the list price. The listing broker paid the listing sales associate 50% of the listing office's commission. The selling broker paid the selling associate 60% of the selling office commission. How much commission did the selling sales associate receive

Answer 1

Answer:

The answer is: $2,700

Explanation:

The house sold for $180,000 (= 90% x $200,000).

The total commission was $9,000 (= $180,000 x 5%), split in half between listing office and selling office.

The selling broker received his $4,500 commission, and then h paid his selling associate 60% of it.

The selling associate received a $2,700 commission (= 60% x $4,500)