Question

A home sells for $225,000. Per the listing agreement, the agent is paid 7% of the sales price, with half of that amount paid to the buyer's agent. The seller's agent also has an agreement with her brokerage for a 70/30 split. How much is the agent's commission?

Answer 1

The agent's commission from the sale of a house priced at $225,000, considering the total commission rate and the brokerage split, is $5,512.50.

Step-by-step explanation:

The question asks how much commission the agent makes from the sale of a house for $225,000 when the total commission rate is 7%, and there is a 70/30 split between the agent and their brokerage.

First, calculate the total commission to be divided between the seller's agent and the buyer's agent: $225,000 * 7% = $15,750.

Next, divide this amount between the seller's agent and the buyer's agent: $15,750 / 2 = $7,875 for each.

Now, calculate the seller's agent's share based on the 70/30 brokerage split: $7,875 * 70% = $5,512.50.

Therefore, the agent's commission is $5,512.50.