What will broker Judy's commission be if she sells Tom and Anna's home listed at $175,000 at a 7% commission rate?

What will broker Judy's commission be if she sells Tom and Anna's home listed at $175,000 at a 7% commission rate?

• A. $4,000
• B. $5,600
• C. $12,250
• D. $25,000

Answer: (C)

To determine broker Judy's commission from the sale of Tom and Anna's home, you need to calculate 7% of the home's selling price, which is $175,000. First, convert the percentage to a decimal by dividing by 100: 7% = 0.07 Next, multiply the home's selling price by this decimal: $175,000 * 0.07 = $12,250 This calculation shows that Judy's commission from the sale would indeed be $12,250. Understanding this calculation is crucial for real estate professionals, as it reflects how commissions are typically structured in real estate transactions based on a percentage of the sale price. This principle applies widely and highlights the importance of being able to perform such calculations accurately when making financial projections or discussing potential earnings with clients.

To determine broker Judy's commission from the sale of Tom and Anna's home, you need to calculate 7% of the home's selling price, which is $175,000.

First, convert the percentage to a decimal by dividing by 100:

7% = 0.07

Next, multiply the home's selling price by this decimal:

$175,000 * 0.07 = $12,250

This calculation shows that Judy's commission from the sale would indeed be $12,250. Understanding this calculation is crucial for real estate professionals, as it reflects how commissions are typically structured in real estate transactions based on a percentage of the sale price. This principle applies widely and highlights the importance of being able to perform such calculations accurately when making financial projections or discussing potential earnings with clients.