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

Question

Linda

Business

21 September, 00:55

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

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Answers (1)

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Brooks Haley · Answer 1

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)