A Hawaii property has a list price of $1,100,000. The seller pays a 5% commission and the buyer brings a full-price offer. How much does the listing broker receive if they offer a 2.5% co-op to the buyer's broker?

Explanation

Total commission = $1,100,000 × 5% = $55,000. Listing broker's share = $1,100,000 × 2.5% = $27,500. Buyer's broker's share = $1,100,000 × 2.5% = $27,500. Both sides receive $27,500 from the total $55,000 commission.