The seller states they will accept the buyer’s offer if the broker lowers their 6% commission by 25%. If the broker accepts, they will receive:
Question & Answer
Review the question and all answer choices
$15,000.
Option A ($15,000) appears to represent the full 6% commission on a $250,000 price or a similar miscalculation; it does not account for the 25% reduction the seller demanded as a condition of acceptance.
$13,200.
Option B ($13,200) may result from an incorrect reduction calculation, such as subtracting 25% of the sale price rather than 25% of the commission rate, or applying the reduction to the wrong base figure.
$9,900.
$8,
Option D appears to be an incomplete or corrupted answer choice ('$8,') and does not represent a valid or calculable commission figure based on the information provided in the question.
Why is this correct?
A 25% reduction of a 6% commission means the broker retains 75% of 6%, which equals 4.5% (6% × 0.75 = 4.5%). Applying 4.5% to the implied sale price of $220,000 yields $9,900 ($220,000 × 0.045 = $9,900), making option C the correct answer. This two-step calculation — first reduce the rate, then apply it to the price — is the proper method for solving commission reduction problems.
Continue Learning
Explore this topic in different formats
More laws-of-agency-fiduciary-duties Videos
Continue learning with related video lessons
Before soliciting business for a brokerage office operating under a fictitious business name, the broker is not required to:
2:55 • 0 views
A disclosure which warns a buyer they may be liable for additional tax obligations after the close of escrow is the:
2:47 • 0 views
For a buyer’s broker to have the ability to negotiate their fee, the buyer’s broker needs to enter into an employment agreement with their buyer, called a(n):
2:38 • 0 views
A broker who fails to promptly disclose their dual agency status is subject to:
3:04 • 0 views
A prospective buyer gave their broker a personal check for $1,000 payable to the seller along with an offer to buy the property. The buyer told the broker the check was not to be cashed until the end of the month. Which of the following is correct?
2:39 • 0 views
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.