Real Estate Math
A Montana agent lists a home for $279,000. It sells for 96% of list price. The commission is 5.5% of the sale price. What does the listing brokerage receive if they keep 55% of the commission?
A$6,540
B$8,102✓ Correct
C$8,316
D$7,695
Explanation
Sale price = $279,000 x 0.96 = $267,840. Total commission = $267,840 x 0.055 = $14,731.20. Listing brokerage 55% share = $14,731.20 x 0.55 = $8,102.16. Let's recalculate: $267,840 x 0.055 = $14,731.20; x 0.55 = $8,102. Selecting $7,176 if the split is to selling broker.
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