You have a listing with a 6% commission. Your sellers have accepted an offer from a buyer that has their own agent. You have agreed to give the buyer's agent 3.5% of the commission. Your agreement with your broker is that you get paid 92% of the commission you earn. The sales price was $387,500.00. How much will you get paid?

Question

Business

Chelsea Reeves

7 August, 01:49

You have a listing with a 6% commission. Your sellers have accepted an offer from a buyer that has their own agent. You have agreed to give the buyer's agent 3.5% of the commission. Your agreement with your broker is that you get paid 92% of the commission you earn. The sales price was $387,500.00. How much will you get paid?

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Claire Hancock · Answer 1

Answer: I will get paid $8,912.50

Explanation:

$387,500 is the purchase price

The seller's side receives 2.5% (6%-3.5% = 2.5%) of the purchase price (which is what's left after paying the buyer's side which is $9,687.50.

$ 387,500 * (2.5/100) = $9,687.5

You're entitled to 92% ($9,687.5 * (92/100) = $8,912.50) of that (due to your agreement with your brokerage) which is a total of $8912.50.