What is Spenser's commission when selling a house listed by broker Adams at a price of $425,000, if the total commission is 7% and Spenser is on a 65% commission schedule?

To determine Spenser's commission when selling a house listed by broker Adams at a price of $425,000, you first need to calculate the total commission on the sale. The total commission is 7% of the sale price.

Calculating the total commission:

[

Total , Commission = Sale , Price \times Commission , Percentage

]

[

Total , Commission = 425,000 \times 0.07 = 29,750

]

Next, Spenser earns a percentage of that total commission, based on his commission schedule of 65%. To find Spenser’s commission, multiply the total commission by his percentage:

Calculating Spenser's commission:

[

Spenser's , Commission = Total , Commission \times Commission , Schedule

]

[

Spenser's , Commission = 29,750 \times 0.65 = 19,337.50

]

When rounding to the nearest dollar, Spenser's commission would be approximately $19,338.

This answer illustrates how to perform commission calculations in real estate scenarios, which is a fundamental aspect of understanding compensation for agents in property transactions.