Real Estate Math
A broker receives a 6% commission on a $175,000 sale. The co-op split is 50/50 between the listing brokerage and the selling brokerage. The selling agent receives 60% of their brokerage's split. How much does the selling agent earn?
A$3,150✓ Correct
B$5,250
C$4,200
D$2,100
Explanation
Total commission = $175,000 × 6% = $10,500. Selling brokerage share = $10,500 × 50% = $5,250. Selling agent share = $5,250 × 60% = $3,150.
Related Tennessee Real Estate Math Questions
- A buyer qualifies for a maximum monthly PITI payment of $1,800. Monthly property taxes are $250, insurance is $100. What is the maximum monthly P&I payment the buyer can afford?
- A property manager charges 8% of monthly rent for management. If rent is $1,450/month and the property is occupied all 12 months, how much does the manager earn annually?
- A Tennessee buyer purchases a home for $315,000 with a 10% down payment. The lender charges 0.5% origination fee. What is the origination fee amount?
- A building has a net operating income of $48,000 per year. If the market cap rate is 8%, what is the estimated value?
- A property is listed at $275,000 and sells for 97% of the asking price. The seller pays a 5% commission and $2,500 in other closing costs. What are the seller's net proceeds?
- A seller pays off their mortgage balance of $147,500 at closing. The closing costs paid by the seller total $8,200. The sale price is $235,000. What are the seller's net proceeds?
- An office building costs $4,200,000 and produces an NOI of $336,000 annually. What is the capitalization rate?
- A seller needs to net $210,000 after paying a 6% commission and $3,500 in other closing costs. What must the property sell for?
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →