Question

Agent Daisy agrees to a 5% commission to list a home at $330,000. The property is sold through another cooperating brokerage with that firm to receive 50% of the total commission on the $330,000 sale. If Daisy receives 55% of her broker’s commission and does not bring the buyer. How much does Daisy’s broker receive from the sale?

Answer 1

To calculate Daisy's broker's earnings, calculate 5% commission on the $330,000 sale price, split it 50% with the cooperating brokerage, and take 45% of Daisy's brokerage share, which amounts to $3,712.50 for the broker.

Step-by-step explanation:

The student's question pertains to calculating commissions from the sale of a property, specifically in a real estate scenario involving multiple parties. To determine Daisy's broker's commission from the sale of a home listed at $330,000 with a 5% commission, we proceed as follows:

• First, calculate the total commission on the sale by multiplying the sale price by the commission rate: $330,000 * 5% = $16,500.
• Since another brokerage is involved and receives 50% of the total commission, Daisy's broker would get the remaining 50%: 50% of $16,500 = $8,250.
• Out of this amount, Daisy receives 55%, which implies her broker receives 100% - 55% = 45% of the $8,250 commission allocated to Daisy's brokerage firm. So, Daisy's broker receives 45% of $8,250 = $3,712.50.

Answer 2

The total amount that Daisy was to receive prior to the house being sold by another brokerage is:
0.05(330,000)
=$16500
Given that the house is sold through another brokerage and Daisy is set to receive the 45% of the commission, the amount Daisy will receive will be:
0.45(16500)
=$7425