Real Estate Math

A seller lists a property for $515,000 and agrees to pay a 5.5% commission. If the property sells for $500,000, how much does the seller pay in commission?

A$27,500✓ Correct
B$28,325
C$25,750
D$26,000

Explanation

Commission is typically based on the actual sale price, not the list price: $500,000 × 0.055 = $27,500.

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