Wisconsin Real Estate Sales Practice Exam

What commission percentage was agreed upon between the seller and the listing broker if the broker received an $8,000 commission on a home sale?

1. 10%

2. 6%

3. 8%

4. 5%

The correct answer is: 8%

To determine the commission percentage agreed upon, we need to analyze the relationship between the commission earned and the sale price of the home. In many real estate transactions, the listing broker earns a commission based on a percentage of the final sale price of the property. In this scenario, the broker received an $8,000 commission. If this amount represents a set percentage of the home's sale price, we can infer that the percentage was likely a common industry rate, which often falls within the range of 5% to 10%. If we take the commonly applied commission rate of 8% as the basis, we can assume that the calculation of the commission would follow this formula: Commission = Sale Price × Commission Rate. If we assume the sale price was $100,000, then an 8% commission would indeed equate to $8,000. This provides a tangible example illustrating that an 8% commission structure aligns perfectly with the amount received by the broker. Overall, the reasoning supports that the agreed-upon commission percentage between the seller and the listing broker was 8%, making it the most likely answer to the question posed.