Question 1

A property sells for $425,000 and the broker charges a 6% commission. The listing agent receives 60% of the broker's total commission. How much does the listing agent earn?

Accepted Answer

$15,300. Total commission = $425,000 × 0.06 = $25,500. Listing agent share = $25,500 × 0.60 = $15,300.

Question 2

A seller wants to net $280,000 after paying a 7% commission. What must the property sell for (rounded to the nearest dollar)?

Accepted Answer

$301,075. Divide the desired net by the complement of the commission rate: $280,000 ÷ 0.93 = $301,075.

Question 3

A property listed at $350,000 sells for 95% of list price. If the total commission rate is 5.5%, what is the total commission paid?

Accepted Answer

$18,287.50. Sale price = $350,000 × 0.95 = $332,500. Commission = $332,500 × 0.055 = $18,287.50.

Question 4

An agent earned a $9,450 commission on a sale. If the commission rate was 6%, what was the sale price of the property?

Accepted Answer

$157,500. Divide the commission by the rate: $9,450 ÷ 0.06 = $157,500.

Question 5

What formula is used to find the selling price when only the net proceeds and commission rate are known?

Accepted Answer

Selling Price = Net Proceeds ÷ (1 − Commission Rate). This accounts for the fact that the commission is a percentage of the sale price, not the net.

Math & Appraisal – Real Estate Broker Exam

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