A property sells for $380,000 with a 6% commission split equally between the listing broker and the selling broker. The listing agent receives 55% of the listing broker's share. How much does the listing agent earn?
Correct Answer
D) $6,270
Step 1: total commission = $380,000 × 6% = $22,800. Step 2: listing broker's half = $22,800 × 50% = $11,400. Step 3: listing agent's share = $11,400 × 55% = $6,270.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Daily rate calculation involves determining the cost or income per day by dividing the total amount by the number of days in the period (usually a year or a month). This is a fundamental step in proration.
The capitalization rate (cap rate) is the ratio of a property's net operating income to its sale price, expressed as a percentage. It is used to estimate value and compare profitability of investment properties. Cap Rate = NOI / Value.
The capitalization rate (Cap Rate) is the rate of return on a real estate investment based on its expected income.
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