David Saks: Real Estate Practice : Lesson 3872

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Real Estate Practice : Lesson 3872

math

Diane Duncan, a saleswoman, is working on a 50/50 split commisssion basis with your brokerage.

She sells a property for 15% less than the listing price of $1,700,000.

The commission schedule with your brokerage calls for 6% on the full selling price of the listing.

Diane has to pay another salesman, Mickey Mogle, 20% of her share of the commisssion.

What is the net amount that Diane will receive for the sale ?

Answers and solutions are posted below the wildlife photos. Please take your time.

wildlife

 

A. $34,680

Let's find out what the property sold for at 15% less than the asking price by first subtracting 15% from 100%, which leaves us with 85% or .85.

Now let's multiply .85 time 1.7 million and we find that the property sold for $1,445,000.

Next, let's find out what the commission was on the property at 6% by multiplying .06 times $1,445,000 and we see that the total commission at 6% was $86,700.

Since your brokerage is working on a 50/50 split divide $86,700 by 2 or multiply times .5 and we get a total commission due diane of $43,350.

Since she has to pay Mickey Mogle 20& of the commission she received from the sale of the property, multiply 43350 times 20% or .2 and we see that she has to pay Mr.Mogle $8670.

Subtract $8670 from Diane's total commission return of $43,350 and we find that Diane is left with a net return on her commission of $34,680.

No argument here !




David Saks



Time&Temp Memphis

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Comment balloon 2 commentsDavid Saks • December 22 2014 06:49AM

Comments

This reminded me of when I was taking my Real Estate licensing tests. I usually skipped the questions that needed math and came back to them...good memories

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) almost 6 years ago

Thanks, Richie.

Posted by David Saks ((retired)) almost 6 years ago

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