Question

a home sells for 225,000 per the listing agreement the commission is 7% of the sales price after half that goes to the buyers agent managing broker the other half of it goes to sheila the buyers the sellers agent Kiko also has a agreement with her broker to slit 70/30 split with 70 going to her how is kilos commision

Answer 1

Kiko's commission from the home sale would be $5,512.50, calculated by first determining the total commission from the sale price and then applying the agreed-upon commission splits between the agents and brokers.

Step-by-step explanation:

The student is asking how to calculate the commission for Kiko, the seller's agent, from a home sale based on a commission structure and a split with her broker. The home sold for $225,000 with a 7% commission on the sales price. Half of this commission goes to the buyer's agent managing broker, and the other half goes to Sheila. Sheila then has an agreement to split her half of the commission on a 70/30 basis with Kiko, where Kiko receives 70%.

Calculation of Kiko's Commission

First, calculate the total commission:
Total Commission = Sales Price x Commission Rate

$225,000 x 7% = $15,750

Next, split the commission for the buyer's agent and for Sheila:
Half Commission = Total Commission / 2

$15,750 / 2 = $7,875

Now, we calculate Kiko's share of the commission based on the 70/30 split with Sheila:
Kiko's Commission = Half Commission x Kiko's Share Percentage

$7,875 x 70% = $5,512.50

Therefore, Kiko's commission from the sale would be $5,512.50.