Question

A house sold for $275,100.00. The buyer's real estate agent earned a commission of $11,004.00, and the seller's real estate agent earned a commission of $6,877.50. What was the commission rate of each agent?

Answer 1

Buyer's real estate agent's commission rate = 4%

Seller's real estate agent's commission rate = 2.5%

Explanation:

Given that:

Amount for which the house was sold = $275,100.00

Earnings by buyer's Real Estate Agent = $11004.00

Earnings by seller's Real Estate Agent = $6,877.50

To find:

The commission rate of each agent = ?

Solution:

Commission rate can be calculated by finding the percentage for both the real estate agents with the amount for which the house was sold.

i.e.

`\text{Rate of Buyer's agent } = \frac{\text{Earnings of Buyer's agent}}{\text{Amount for which the house was sold}}`

`\Rightarrow (\$11004.00)/(\$275,100.00)* 100 = 4\%`

`\text{Rate of Seller's agent } = \frac{\text{Earnings of Seller's agent}}{\text{Amount for which the house was sold}}`

`\Rightarrow (\$6,877.50)/(\$275,100.00)* 100 = 2.5\%`

Therefore, the answer is:

Buyer's real estate agent's commission rate = 4%

Seller's real estate agent's commission rate = 2.5%