A broker splits a 4.5% gross commision on a property 50/50 with another broker. If his share is $18,000 what is the price of the property?
The answer is D.
This is obviously a problem involving real estate math. You’ll need to use some algebra here.
This is what the math will look like:
It’s always easiest to think of the problem in words and then write it out in the actual algebra. Basically, $18000 is ½ of the 4.5% commission, which is 4.5% of the selling price. The selling price is what we want to find out, so that will be our variable X.
Here’s what the math will look like:
18,000 = .045(.5)(X)
So, X = 18,000/(.045)(.5), which means X is 18,000/(.0225) = 800,000.
Thus, the selling price of the home must have been $800,000