Real Estate · Real Estate Math

A home sells for $360,000 with a 6% total commission. If the listing and selling brokerages split the commission equally, how much does each brokerage receive?

Correct answer

$10,800

  1. A $21,600
  2. B $10,800
  3. C $5,400
  4. D $43,200

Why this is the answer

First find the total commission: $360,000 × 6% = $360,000 × 0.06 = $21,600. The two brokerages split it equally, so each receives $21,600 ÷ 2 = $10,800. (Any further split between a brokerage and its individual agent would come out of that brokerage's share and is a separate calculation.) Commission problems are a staple of the real estate math section: convert the percentage to a decimal, multiply by the sale price for the total, then divide according to the split described. Watch carefully for whether the question asks for the total commission, one brokerage's share, or an individual agent's share.
Source: Real Estate Principles, Commission Math