Real Estate · Real Estate Math

A home sells for $400,000. The total commission rate is 6%, split equally between listing and buyer brokers. Each broker then pays its agent 50%. What does the listing agent receive?

Correct answer

$6,000

  1. A $24,000
  2. B $12,000
  3. C $6,000
  4. D $3,000

Why this is the answer

Step by step: total commission = 6% of $400,000 = $24,000. Split equally between listing and buyer brokerages = $12,000 to each brokerage. Each brokerage pays its agent 50% = $6,000 to the listing agent. The buyer's agent receives the same amount from their brokerage's share. Real estate math questions reward careful step-by-step work because compound calculations are easy to short-circuit. Always identify what is being asked (commission, net to seller, gross sales price), apply percentages in the correct order, and check that your answer is reasonable. The standard real estate commission split (50/50 between brokerages, 50/50 between brokerage and agent) is a common assumption on exams, but actual splits vary widely.
Source: Real Estate Math, Commission Calculations