Real Estate Math
A Minnesota home sold for $365,000. Using a 6% commission rate with a 55/45 split between listing and buyer's brokerages, how much does the buyer's brokerage receive?
A$10,950
B$12,045
C$21,900
D$9,855✓ Correct
Explanation
Total commission = $365,000 x 6% = $21,900. Buyer's brokerage share = $21,900 x 45% = $9,855.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
AmortizationThe 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.
Math Concepts
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