A listing agreement states a 7 percent commission. A home sells for $130,000. What is the seller's net after the commission is paid?

A listing agreement states a 7 percent commission. A home sells for $130,000. What is the seller's net after the commission is paid?

• A. $110,000
• B. $120,900
• C. $118,000
• D. $125,000

Answer: (B)

Key idea: the seller’s net is the sale price minus the broker’s commission. The commission is 7% of 130,000, which equals 9,100. Subtracting that from the sale price gives 130,000 − 9,100 = 120,900. So the seller nets 120,900 after paying the commission. The other amounts would require deductions different from 7% of the sale price, so they don’t match this scenario.

Key idea: the seller’s net is the sale price minus the broker’s commission. The commission is 7% of 130,000, which equals 9,100. Subtracting that from the sale price gives 130,000 − 9,100 = 120,900. So the seller nets 120,900 after paying the commission. The other amounts would require deductions different from 7% of the sale price, so they don’t match this scenario.