City of Commerce, CA Real Estate News

By Eddy Martinez
(Nationwide Funding Group)
How do realtors calculate their commisison when selling or finding a home for a customer? When signing closing escrow or loan documents this amount is just stated but not explained. Here is a sample scenario :John , a real estate salesperson , found a buyer for a $600,000.00 house, The seller agreed to pay a 6 % commission on the sale to John`s broker. John is on a 50% - 50 % with his broker. WHAT IS THE AMOUNT OF HIS COMMISION?Known: P (Sales Price , $) and R (Commission Rate %)P = $600,000.00 R = $ 6 % or 0.06Unknown: I (Commision Income, $) What we do not know is the dollar amount of the commission paid to the salesperson John. First, the total commission paid to the broker must be calculated, then calculate the amount due to John. Formula: I = P x R, or Commission Income = Sales Pri...
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