The sellers, Mr. and Mrs. Hernandez, listed their property for $112,000 and agreed to an exclusive right to sell listing agreement at a 4% commission to be paid to Lucky Nines Estate Company at closing. The sellers sold the property themselves during the listing period for $106,000. How much commission, if any, would Lucky Nines Real Estate Company be entitled to at closing?

a) $4,240

b) $4,480

c) $0

d) $4,360

Question

Mathematics

Giovani Mcguire

22 November, 10:06

The sellers, Mr. and Mrs. Hernandez, listed their property for $112,000 and agreed to an exclusive right to sell listing agreement at a 4% commission to be paid to Lucky Nines Estate Company at closing. The sellers sold the property themselves during the listing period for $106,000. How much commission, if any, would Lucky Nines Real Estate Company be entitled to at closing?

a) $4,240

b) $4,480

c) $0

d) $4,360

+5

Answers (1)

Know the Answer?

Kaiya Osborn · Answer 1

commission = $4,240; A

Step-by-step explanation:

Given:

- Property listed value = $112,000

- The listing period value = $106,000

- Commission = 4%

Find:

How much commission, if any, would Lucky Nines Real Estate Company be entitled to at closing?

Solution:

- We need to know that the commission is gained on the sold value of listing period not the listed value originally. Hence, the amount of commission paid is:

commission = Rate*listing period value

commission = 0.04*$106,000

commission = $4,240