Wisconsin Real Estate Sales Practice Exam

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If a seller sells a home for $180,000 and pays a 6% commission, what is the listing broker’s commission after sharing 40% with the selling broker?

$5,400
$6,480
$7,200
$10,800

The correct answer is: $6,480

To find the listing broker's commission after sharing with the selling broker, first calculate the total commission based on the sale price of the home. 1. Calculate the total commission amount: The home sold for $180,000 and the commission percentage is 6%. So, Total commission = $180,000 * 0.06 = $10,800. 2. Next, determine how much of this total commission goes to the listing broker after sharing. The listing broker shares 40% of the commission with the selling broker. This means the listing broker keeps 60% of the total commission. 3. Calculate the portion that the listing broker retains: Listing broker's commission = Total commission * 60% = $10,800 * 0.60 = $6,480. This calculation shows that the listing broker ultimately receives $6,480 after sharing the designated 40% with the selling broker. Thus, this answer aligns with the calculations and the correct understanding of commission distribution in real estate transactions.