In: Finance
You work for ABC Realty in Omaha, where you recently represented a client as a buyer’s exclusive agent. The buyer purchased a $350,000 house, where the listing agreement specified that a 6% commission would be paid at closing.
a)What is the total commission paid by the seller at closing?
b)What is the commission due to ABC Realty if the seller/buyer broker split is 60/40 (60% to seller’s broker, 40% to buyer’s broker)?
c)What commission will you receive if you have a 65% split with your broker?
a. total commission paid by the seller = house price * commission
total commission paid by the seller = 350000 * 6%
Total commission paid by the seller = $21000
b. Commission due to ABC Realty = Commission Amount * 40%
Commission due to ABC Realty = 21000 * 40%
Commission due to ABC Realty = 8400
c. commission we receive if 65% split with broker = Commission received by ABC realty * (1 - Broker %)
commission we receive if 65% split with broker = 8400 * (1 - 0.65)
commission we receive if 65% split with broker = $2940