Question

Benji is a buyer's agent, and he'll receive a split of the commission paid from the sale of Harriet's listing. The property sold for $425,000. The total commission paid from the sale is 6%, split evenly between the buyer and seller brokerages. Benji has an agreement with his broker that he earns 80% of the commission received. How much will Benji be paid from this sale?

Answer 1

Benji will be paid $10,200 from the sale.

Step-by-step explanation:

Benji will receive a split of the commission that is paid from the sale of Harriet's listing. The total commission paid from the sale is 6%, which is split evenly between the buyer and seller brokerages. Benji has an agreement with his broker that he earns 80% of the commission. Therefore, to calculate Benji's payment, we can follow these steps:

• Calculate the total commission amount: 6% of $425,000 = $25,500.
• Split the total commission evenly between the buyer and seller brokerages: $25,500 / 2 = $12,750.
• Calculate Benji's payment by multiplying his agreed percentage (80%) by the split commission: $12,750 * 0.8 = $10,200.

Therefore, Benji will be paid $10,200 from this sale.