Real estate broker José, lists a property for $300,000. A six percent commission is agreed upon. Another agent brings an offer for $280,000. The seller then asks Jose to reduce his side if the commission to two and a half percent. José agrees. What is the difference between the reduction in commission and the original commission that Jose will receive?

Question

Quizplus · Accepted Answer

The original commission on a $300,000 sale at 6% would be $18,000. However, the offer is for $280,000. At a 6% commission, José would receive $16,800. But José agrees to reduce his commission to 2.5%, which on $280,000 is $7,000. The difference between the original commission on the offer ($16,800) and the reduced commission ($7,000) is $9,800. However, the question asks for the difference between the reduction in commission and the original commission José will receive, which is not directly calculated in the steps provided but inferred from the options given. The closest answer based on the calculation error is $2,000, which seems to be a misunderstanding of the question's calculation. The correct calculation should focus on the difference in commission amounts directly related to the scenario described, which involves calculating the actual commission amounts and their differences.

Real Estate Broker José, Lists a Property for $300,000