If a property sells for $250,000 and the commission rate is 5%, how much of that goes to the broker?

To determine how much of the sale price goes to the broker as a commission, you first need to calculate the total commission by applying the commission rate to the sale price of the property.

In this scenario, the property sells for $250,000 and the commission rate is 5%.

To calculate the commission, you multiply the sale price by the commission rate:

$250,000 x 0.05 = $12,500.

This result represents the total commission from the sale, which is typically shared between the brokerage and any agents involved. However, the question specifically asks how much goes to the broker. Since the entire commission is what the broker receives before splits with agents or other parties, it confirms that the amount going to the broker is indeed $12,500.

Thus, identifying this calculation is key to arriving at the correct answer, illustrating how to properly apply commission rates in real estate transactions.