Burroughs School of Real Estate

Tom Stepanski

Supplemental Study Materials, Commissions

1. You sell a house for $35,000.00 at 6% commission to your broker. Your share is 50% of the commission. What is your share? 35,000 X .03 = $1050

2. A home owner tells you that another agent offered to list his house for $86,000.00 and charge $4,300.00 commission. What rate of commission did the other agent negotiate with the seller?
4,300 / 86,000 = 0.05 or 5% Commission.

3. A client wishes to list his house with you at a price that will net him $46,000.00 after the reduction of the 7% commission rate that you negotiated. What sales price do you need to list the home for?