Question

Julie is a sales associate for ABC Realty. She sold a house that was listed in the MLS from XYZ REALTORS®. The list price was $340,000 and the property sold at 95% of list. The commission rate to the seller was 7% and the brokers divided the commission--55% to 45%--with Julie's broker getting 45%. Julie and her broker split the commission equally. How much did Julie make in commission on this sale?

Answer 1

Answer:

Julie made $5,087.25 in commission on this sale.

Explanation:

Selling price of the property = Listed price * Percentage of listed at which the property is sold = $340,000 * 95% = $323,000

Commission on sales of the property = Selling price of the property * Commission rate = $323,000 * 7% = $22,610

Amount of the commission to Julie's broker = Commission on sales of the property * Commission share percentage to Julie's broker = $22,610 * 45% = $10,174.50

Since Julie and her broker split the commission equally, we have:

Commission made by Julie from the property sale = Amount of the commission to Julie's broker / 2 = $10,174.50 / 2 = $5,087.25

Therefore, Julie made $5,087.25 in commission on this sale.