Christopher has hired a real estate broker to help facilitate the sale of his home. Realizing that Christopher is most likely going to realize a loss on his investment due to the recent decline in housing values in his neighborhood, the broker has agreed to charge Christopher a lower commission rate as long as Christopher enters into an exclusive right of sale listing contract. If Christopher ends up selling his house for $364,583 and takes home $350,000 after paying the real estate broker's commission, what was the commission rate that the broker ended up charging?

Question

Quizplus · Accepted Answer

The commission is $364,583 - $350,000 = $14,583. The commission rate is ($14,583 / $364,583) * 100% = 4.0%.

Christopher Has Hired a Real Estate Broker to Help Facilitate