Question

Assuming that the listing broker and the selling broker in a transaction split their commission equally, what was the sales price of the property if the commission rate was 6.5% and the listing broker, after paying the selling broker, kept $2,593.50?
a. $88,400
b. $79,800
c. $76,200
d. $39,900

Answer 1

Answer:

b. $79,800

Explanation:

the commission is split in two equal part

one for the listing broker and one for the selling broker.

if the selling kept 2,593.5

then, the listing also receive 2,593.5

We add them and obtain the total commission:  5,187

This represent the 6.5% of the property

now, we calculate for the total value of the real state:

property x broker commision = broker proceeds

property x 6.5% = 5,187

property = 5,187/6.5% = 5,187/.065 = 79,800