Wisconsin Real Estate Sales Practice Exam

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Prepare for the Wisconsin Real Estate Sales Exam. Utilize flashcards and multiple choice questions with detailed explanations. Achieve success on your test!

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If the listing agent earned an $8,000 commission, what was the selling price of the home if the seller agreed to pay the listing broker 8%?

$200,000
$160,000
$240,000
$180,000

The correct answer is: $200,000

To determine the selling price of the home based on the commission earned and the percentage agreed upon, you can use the following formula: Selling Price = Commission ÷ Commission Rate In this case, the commission is $8,000, and the commission rate is 8% (or 0.08 when expressed as a decimal). Using the formula: Selling Price = $8,000 ÷ 0.08 = $100,000. However, since $100,000 does not represent the given options, we should clarify that the commission amount reflects a percentage of the selling price. To find the total selling price where the commission aligns with the commission rate given: 1. Understand that if the listing agent earned $8,000 at an 8% commission structure, the commission represents 8% of the selling price. 2. To find the selling price that results in an $8,000 commission at a rate of 8%, you can rearrange the original equation as follows: Selling Price = Commission ÷ 0.08 = $8,000 ÷ 0.08 = $100,000. This answer seems to conflict with other options provided, suggesting a misunderstanding of the calculations or the context of the question