Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages.

The Question: Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he earned $12,239.50 in commissions from his home sales, which totaled $538,000. What is the brokerage’s commission rate?

Answer: 6.5%
Jared’s firm’s commission is $12,239.50 ÷ .70 = $17,485.
Multiply that by two for the total commission the
firm grossed: $34,970. Then divide by the total sales
amount for the brokerage’s commission rate:
$34,970 ÷ $538,000 = 0.065, or 6.5%

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