Question
A property sold for $745,000 in a co-brokered transaction. The seller has agreed to pay a 7% commission to the listing firm. The listing firm has agreed to equally split the commission with the selling firm. If the buyer’s broker will receive 8% of the selling firm’s commission, how much commission will the buyer’s broker receive? $14,900 $3725 $$37250 $18625
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Answer to a math question A property sold for $745,000 in a co-brokered transaction. The seller has agreed to pay a 7% commission to the listing firm. The listing firm has agreed to equally split the commission with the selling firm. If the buyer’s broker will receive 8% of the selling firm’s commission, how much commission will the buyer’s broker receive? $14,900 $3725 $$37250 $18625
Velda
4.5110 Answers
First, let's calculate the total commission paid to the listing firm. The commission is calculated as a percentage of the selling price of the property.
Commission paid to the listing firm = 7% of $745,000
Commission paid to the listing firm = (7/100) x $745,000
Commission paid to the listing firm = $52,150
Since the listing firm agreed to equally split the commission with the selling firm, each firm will receive half of the commission.
Commission received by each firm = ($52,150) / 2
Commission received by each firm = $26,075
Now, let's calculate the commission received by the buyer's broker, which is 8% of the selling firm's commission.
Commission received by the buyer's broker = 8% of $26,075
Commission received by the buyer's broker = (8/100) x $26,075
Commission received by the buyer's broker = $2,086
Answer: The buyer's broker will receive $2,086 in commission.
Commission paid to the listing firm = 7% of $745,000
Commission paid to the listing firm = (7/100) x $745,000
Commission paid to the listing firm = $52,150
Since the listing firm agreed to equally split the commission with the selling firm, each firm will receive half of the commission.
Commission received by each firm = ($52,150) / 2
Commission received by each firm = $26,075
Now, let's calculate the commission received by the buyer's broker, which is 8% of the selling firm's commission.
Commission received by the buyer's broker = 8% of $26,075
Commission received by the buyer's broker = (8/100) x $26,075
Commission received by the buyer's broker = $2,086
Answer: The buyer's broker will receive $2,086 in commission.
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