Lee Ann is a salesperson with Hometown Realty which offers a 75/25 split between its salespeople and broker, respectively. If Lee Ann listed home at a 5% commission and the property sold for $520,000, how much commission did Lee Ann earn if she only represented the sellers?

Answer 1

To calculate Lee Ann's commission from the sale of the home, we first need to determine the total commission based on the sale price and the commission rate.

1. Calculate the total commission: \[ \text{Total Commission} = \text{Sale Price} \times \text{Commission Rate} \] \[ \text{Total Commission} = 520,000 \times 0.05 = 26,000 \]

2. Calculate Lee Ann's share of the commission: Since Hometown Realty has a 75/25 split between the salesperson (Lee Ann) and the broker, Lee Ann's share of the commission will be: \[ \text{Lee Ann's Commission} = \text{Total Commission} \times 0.75 \] \[ \text{Lee Ann's Commission} = 26,000 \times 0.75 = 19,500 \]

Thus, Lee Ann earned $19,500 in commission from the sale of the home.