Question

A real estate salesperson finds a buyer to a For Sale By Owner property. The home sells for $245,000, and the seller agrees to pay a commission of 3%. The salesperson is on a 65% commission schedule with her broker, who pays her 65% minus office expenses of $500. How much will the salesperson receive from this transaction?

Answer 1

$4,277.5

Step-by-step explanation:

Given:

Selling cost of the house = $245,000

Percentage of commission = 3%

Amount of commission = 0.03 × $245,000 = $7,350

Now,

The salesperson is on a 65% commission schedule with her broker

This means that the salesperson will get only 65% of the amount of commission

thus,

Commission to paid = 0.65 × $7,350 = $4,777.5

The final amount received = Commission - office expenses

or

The final amount received = $4,777.5 - $500 = $4,277.5