A property sells for $300,000. The commission rate is 6%, split equally between listing and selling brokers. What does each broker receive?
Question & Answer
Review the question and all answer choices
$9,000
$18,000
The figure of $18,000 represents the total commission paid by the seller before any split — a test-taker who selects this answer has correctly calculated the gross commission but forgotten to apply the equal split between the two brokers, which is a critical step specified in the question.
$6,000
The figure of $6,000 does not correspond to any standard calculation in this problem — it might result from incorrectly dividing the sales price by a wrong factor or misapplying the commission rate, and it represents neither the total commission nor any standard split of the actual commission.
$12,000
The figure of $12,000 might result from a test-taker incorrectly calculating 6% of $200,000 (perhaps confusing the sales price with a loan amount from another problem) — it does not reflect the correct application of 6% to the $300,000 sales price and does not account for the equal split.
Why is this correct?
The correct answer of $9,000 per broker is derived from a precise two-step calculation: first, multiply the sales price ($300,000) by the commission rate (6%) to get the total commission of $18,000; then divide by 2 for an equal split, yielding $9,000 per broker. This calculation reflects standard industry practice where the listing agreement specifies the total commission rate and the MLS offer of compensation specifies how much of that total is offered to a cooperating buyer's broker. Both steps must be performed in sequence, and the answer is unambiguous when the split is described as 'equal.'
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