A broker earns a 6% commission on a $480,000 sale. If the broker pays their salesperson 55% of the listing side (50/50 split with buyer's broker), how much does the salesperson earn?
Why $7,920 Is Correct
Answer A: $7,920
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Alabama Questions
- A property in Alabama sells for $240,000. The total commission is 6%. How much does the listing broker receive if the commission is split equally with the buyer's broker?Real Estate Math
- A listing agent receives 60% of a 5% commission on a $400,000 sale. How much does the listing agent earn?Real Estate Math
- A salesperson earns 55% of the commission paid to their broker. If the broker received $9,750 on a sale, how much does the salesperson earn?Real Estate Math
- An agent earns a 6% commission on a sale. The listing side gets 3% and the selling side gets 3%. The home sold for $350,000. How much does each side earn?Real Estate Math
- A salesperson signs a listing agreement on behalf of their qualifying broker. Who is the actual listing agent (the seller's agent)?Agency
- Which type of listing agreement gives the broker the exclusive right to sell, meaning the broker earns commission regardless of who sells the property?Contracts
- A salesperson who collects a commission directly from a buyer, bypassing their broker, has:Alabama License Law
Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →