A property sells for $325,000. If the commission is 6%, split equally between listing and selling brokers, what does each broker receive?
Audio Lesson
Duration: 2:42
Question & Answer
Review the question and all answer choices
$9,750
$19,500
$13,000
$16,250
Why is this correct?
$325,000 × 6% = $19,500 total. Split equally: $19,500 ÷ 2 = $9,750 each.
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 question about real estate math that's a bit of a breeze. Are you ready?
Student
Absolutely, I'm ready. Let's do this!
Instructor
Great! The question is: A property sells for $325,000. If the commission is 6%, split equally between listing and selling brokers, what does each broker receive?
Student
Okay, I'm thinking we need to calculate the total commission first and then divide it by two since it's split between the two brokers.
Instructor
Exactly! That's the core concept being tested here. It's all about percentage calculation and division. Let's break it down step by step.
Student
So, to find the total commission, we multiply the sale price by the commission rate?
Instructor
Correct! You take $325,000 and multiply it by 0.06. What do you get?
Student
Oh, I see! That's $19,500.
Instructor
Perfect! Now, since the commission is split equally, we divide that total by 2. So, $19,500 divided by 2 is...
Student
$9,750!
Instructor
Exactly! That's your answer, option A. Now, let's talk about why the other options are wrong. Option B is the total commission before splitting, which is not what the question asks for. Option C is a common mistake, where students might misread the commission percentage or make a calculation error. And option D could be the result of a percentage point error or an incorrect division.
Student
Got it. So, it's all about the calculation and the division, not just the multiplication.
Instructor
Exactly! A great memory technique is to think of the total commission as a pizza that needs to be shared equally between two brokers. First, you bake the whole pizza (calculate the total commission), then you cut it exactly in half (divide by 2) to ensure each broker gets an equal slice.
Student
That's a fantastic way to visualize it. It makes sense.
Instructor
And remember, for commission questions, always follow these steps: 1) Calculate the total commission, 2) Check if it needs to be split between parties, and 3) Divide accordingly. Always verify what the question is asking for, whether it's the total commission or each party's share.
Student
Thanks for the tips, I'll definitely keep that in mind.
Instructor
You're welcome! And remember, practice makes perfect. Keep working on your math skills, and you'll be a pro in no time. Thanks for joining us today, and good luck on your exam!
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