How much will the seller owe Ajax Realty at closing for a property listed at 8% commission on a sale price of $300,000?

How much will the seller owe Ajax Realty at closing for a property listed at 8% commission on a sale price of $300,000?

• A. $24,000
• B. $15,000
• C. $12,000
• D. $30,000

Answer: (A)

To determine how much the seller will owe Ajax Realty at closing for the commission, you first need to calculate the total commission based on the sale price of the property. In this case, the property is listed for a sale price of $300,000, and the commission rate is 8%. To find the total commission, multiply the sale price by the commission rate: \[ Total\ Commission = Sale\ Price \times Commission\ Rate \] \[ Total\ Commission = 300,000 \times 0.08 = 24,000 \] So, the seller will need to pay $24,000 in commission to Ajax Realty at closing. This is why the answer is $24,000. The calculation clearly demonstrates the application of percentage-based commission based on the sale price, which is foundational in real estate transactions.

To determine how much the seller will owe Ajax Realty at closing for the commission, you first need to calculate the total commission based on the sale price of the property. In this case, the property is listed for a sale price of $300,000, and the commission rate is 8%.

To find the total commission, multiply the sale price by the commission rate:

[

Total\ Commission = Sale\ Price \times Commission\ Rate

]

[

Total\ Commission = 300,000 \times 0.08 = 24,000

]

So, the seller will need to pay $24,000 in commission to Ajax Realty at closing. This is why the answer is $24,000. The calculation clearly demonstrates the application of percentage-based commission based on the sale price, which is foundational in real estate transactions.