A property sold for $350,000. The listing broker receives 3% and the selling broker receives 3%. The selling agent's split with their broker is 70/30. How much does the selling agent earn?
Correct Answer
D) $7,350
Selling broker's commission = $350,000 × 0.03 = $10,500. Selling agent's share = $10,500 × 0.70 = $7,350.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Commission splits refer to the division of the total real estate commission among the listing and selling brokerages, and then between each broker and their respective agents. Commission rates and splits are always negotiable.
Determining ownership days involves calculating the number of days each party (buyer and seller) owned the property during the relevant period (usually a year). This calculation is crucial for accurate proration.
The gross rent multiplier (GRM) is a quick method for estimating the value of income-producing property by multiplying the property's gross rent by a factor derived from comparable sales. GRM = Sale Price / Gross Rent.
More Real Estate Math Questions
A county charges $40 to record the first page of a deed and $7 for each additional page. If a deed is 3 pages long, what is the recording fee?
A property sells for $300,000 with a 6% commission split equally between the listing broker and the selling broker. The listing agent receives 60% of the listing broker's share. How much does the listing agent earn?
A buyer is purchasing a property for $450,000 with an 80% LTV loan. Buyer closing costs are $9,500, the earnest money deposit is $10,000, and the seller has agreed to a $5,000 closing cost credit. How much cash must the buyer bring to closing?
An individual residential condominium in New York City sells for $800,000. What combined New York State transfer tax and NYC RPTT is due, before any contractual allocation between the parties?
$285,000 sale, 6%:
- → A transfer tax is charged at $1.00 per $500 of sale price (rounded up to the nearest $500). If the property sells for $312,000, what is the transfer tax?
- → Annual property taxes of $8,400 are NOT yet paid. Closing is March 16 with seller owning the day of closing (360-day year, 30-day months). How much is the seller's prorated tax debit?
- → A 6% commission is established. The house sells for $2,800,000. What is the commission?
- → A lot purchased 25 years ago for $40,000 has appreciated 45% total. What is it worth today?
- → An investor borrows $200,000 at 5.5 percent annual interest, with monthly payments of $1,135.58. After the first monthly payment, how much of the payment goes toward principal?
- → A lot is 100 feet × 150 feet. How many square feet is the lot?
- → A seller closes on a property for $410,000. The commission is 6%, other seller closing costs are $5,500, and the existing mortgage payoff is $190,000. What are the seller's net proceeds before any tax effects?
- → A seller prepaid annual taxes of $7,200 on January 1. Closing occurs on April 1 (seller owns through March 31). Using a 360-day year, how much does the buyer owe the seller as a tax proration credit?
- → Gross income $60,000, expenses $22,000. NOI:
- → A property has an assessed value of $150,000 and a tax rate of 22 mills. What is the annual property tax?
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