A property sells for $300,000. The commission rate is 6%, split equally between listing and selling brokers. What does each broker receive?
Audio Lesson
Duration: 2:30
Question & Answer
Review the question and all answer choices
$9,000
$18,000
$6,000
$12,000
Why is this correct?
Total commission = $300,000 x 6% = $18,000. Split equally = $18,000 / 2 = $9,000 per broker.
Podcast Transcript
Full conversation between instructor and student
Instructor
Hey there, welcome back to our real estate license exam prep podcast. Today, we're diving into a classic real estate math question that's often on the test. Are you ready?
Student
Absolutely, I'm ready. What's the question?
Instructor
Great! The question is: A property sells for $300,000. The commission rate is 6%, split equally between listing and selling brokers. What does each broker receive?
Student
Okay, so we need to find out how much each broker gets. Does that mean we're just splitting the 6%?
Instructor
Exactly, and this is a great example of a foundational skill in real estate math. You're going to calculate the total commission first, then divide it equally between the two brokers.
Student
Got it. So, the total commission would be $300,000 times 6%?
Instructor
Correct! That's $18,000. Now, since the commission is split equally, we divide that by 2 to find out each broker's share.
Student
Oh, I see. So, $18,000 divided by 2 is $9,000. That's the correct answer, right?
Instructor
Absolutely, that's the correct answer. It's option A. Now, let's talk about why the other options are wrong. Option B is the total commission, not each broker's share. Option C is just 3% of the sale price, which is not how we calculate the split. And option D is half of the total commission calculation error, using the wrong commission percentage.
Student
I see, so it's all about the split and the right commission rate. That makes sense.
Instructor
Exactly. To help remember this, think of a pie cut into two equal halves. One half represents the listing broker, and the other the selling broker. The whole pie is the total commission.
Student
That's a great visual! It'll help me remember how to split the commission.
Instructor
Perfect. And remember, for commission questions, always calculate the total commission first, then apply any splits. Always read the question carefully to determine what it's asking for.
Student
Thanks for the tip. I'll keep that in mind.
Instructor
You're welcome! And remember, these questions are designed to test your foundational skills, so keep practicing. You've got this!
Student
Thanks, I feel more confident now. I'll keep working on my math skills.
Instructor
That's the spirit! Keep up the great work, and we'll see you next time for more real estate license exam prep. Good luck!
Continue Learning
Explore this topic in different formats
More Real Estate Math Episodes
Continue learning with related audio lessons
Annual property taxes are $4,380. The property closes on March 15. If the seller has NOT paid taxes for the current year, how much does the seller owe at closing? (Use 365 days)
3:08 • 57 plays
The return of land to the grantor or grant- or’s heirs when the grant is over is BEST described as
2:48 • 86 plays
A property sells for $325,000. If the commission is 6%, split equally between listing and selling brokers, what does each broker receive?
2:42 • 0 plays
Property taxes on a Texas home are $6,000 per year. The sale closes on April 1. How much does the seller owe for prorated taxes?
2:56 • 0 plays
A property is assessed at $250,000. The tax rate is $2.50 per $100. What is the annual tax?
2:50 • 0 plays
Ready to Ace Your Real Estate Exam?
Access 2,500+ free podcast episodes covering all 11 exam topics.