Unit 4: How Much Am I Getting? Unit Exam

Simi is a buyer's agent, and she'll receive a split of the commission paid from the sale of Tanner's listing. The property sold for $425,000. The total commission paid from the sale is 6% split evenly between the buyer's and seller's brokerages. Simi has an agreement to give her broker that 20% of the commission she receives. How much will Simi be paid from this sale?

$10,200 The total commission paid is $25,500 ($425,000 × .06). Half of this is paid to Simi's brokerage ($12,750). Of that, Simi gets 80% ($10,200).

Bradley listed a house at an 8% commission rate, and it just sold for $723,500. His firm and the buyer's agent's firm split the commission equally between them. Then Bradley, who has a 50/50 commission split with his broker, took his check to the bank. How much did Bradley earn from this transaction?

$14,470

Shelly's listing sold for $650,000. The total commission generated from the sale is 5%, of which Shelly's brokerage keeps half. Shelly has an agreement with her broker that she earns 90% of commission generated. How much will she be paid for this sale?

$14,625 The total commission paid is $32,500 ($650,000 × .05). Half of this is paid to Shelly's brokerage ($16,250). Of that, Shelly gets 90% ($14,625).

Your seller client has an offer for $300,000. If the agreed-upon commission is 5%, what is net to seller before any other costs are taken into account?

$150,000

The current value of a property is $105,000. What was the original cost of the property if there has been a 30% loss in value?

$150,000 Take the current value of the property divided by the total depreciation: 100% ‒ 30% = 70%, then $105,000 ÷ 0.70.

A property sells for $200,599, which is 15% more than the owner paid eight years ago. What did the owner originally pay for the property (round to the nearest cent)?

$174,433.91 Take the sale price of the property divided by the total profit: 100% + 15% = 115%, then $200,599 ÷ 1.15.

What did the sellers originally pay for their property if they sold it for $268,550 and realized a 13% profit? Round to the nearest cent.

$237,654.87

Your clients sold their property for $500,000. Your commission rate is 5%. What's your commission (before splits or sharing with the cooperating agent)?

$25,000

A seller wants to net $10,000 after the broker's commission of 6% and a loan balance of $250,000 are paid. For how much does the property need to sell?

$276,596

A seller wants to break even after the broker's commission of 5% and loan balance of $300,000 are paid. At what price must the house sell?

$315,789

Maurice received an offer of $480,000 for his home. The commission on the sale is 6%. Maurice's mortgage payoff is $78,500. He has additional closing expenses totaling $2,200. What will Maurice net from the sale of his home, rounded to the nearest whole dollar?

$370,500

If you sell a home for $143,000, and your commission rate is 5%, what is your commission on the sale of this home?

$7,150

Yasmin listed a house at a 6% commission rate, and it just sold for $463,500. Her brokerage and the buyer's agent's brokerage split the commission equally between them. Then Yasmin, who has a 60/40 commission split with her broker (Yasmin gets the higher split), took her check to the bank. How much did Yasmin earn from this transaction?

$8,343

What percentage of loss would the seller have if he paid $18,000 for a vacant lot, built a home on the lot that cost $145,000, and then sold the property for $153,000? Round your answer to the nearest percent.

6% Add the cost of the lot and the cost of the house together to get the total cost ($163,000). Next, subtract the sales price from the total cost to get the amount of loss ($10,000) he took. Finally, divide the total cost by the loss amount ($10,000 ÷ $163,000).

Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. What is Jared's brokerage's commission rate?

6.5% Jared was paid $12,239.50, which is 70% of the amount paid to his broker as commission. That makes his firm's commission $12,239.50 ÷ .70 = $17,485. Multiply that by two for the total commission the firm grossed, since it's shared 50/50 with a cooperating brokerage (the brokerage that brings the buyer to the sale), giving you $34,970. Then divide by the total sales amount for the brokerage's commission rate: $34,970 ÷ $538,000 = 0.065, or 6.5%.

A _____ is made when a property is sold for more than the original price.

Profit

Broker Mica wants to figure out her commission from her current sale. Which numbers does she need to do this?

Sales price and commission rate