A Colorado property sold for $620,000. The listing broker's side earned 3.5% and the buyer's broker's side earned 2.5%. How much more did the listing broker earn than the buyer's broker?
Why $6,200 Is Correct
Answer B: $6,200
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 Colorado Questions
- A Colorado property is sold for $525,000 with a 5.5% commission. The listing broker and buyer's broker split the commission 50/50. The listing associate receives 60% of their office's share. How much does the listing associate earn?Real Estate Math
- A Colorado property sells for $485,000. The listing broker charges a 6% commission, split equally with the buyer's broker. How much does each broker's office receive?Real Estate Math
- A Colorado broker's office has a total annual commission income of $1,200,000. The employing broker receives 30% and the remaining 70% is split equally among 10 associate brokers. How much does each associate broker earn annually?Real Estate Math
- A Colorado broker earns a 5% commission on a $780,000 sale. Their split with the employing broker is 55% to the associate and 45% to the office. How much does the associate earn?Real Estate Math
- The Colorado exclusive right-to-sell listing agreement establishes an 'expiration date.' What happens if the property is not sold by that date?Contracts
- A Colorado listing agreement expires before the property sells. The seller then sells the property to a buyer the listing broker introduced. The broker may be entitled to a commission under the:Contracts
- A Colorado buyer's broker agreement typically protects the broker's right to earn a commission when:Colorado License Law
- In Colorado, which type of listing agreement gives the seller the right to sell the property themselves without owing the broker a commission?Contracts
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 Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →