Real Estate Commissions: What Amount Should be Paid to Amy?

What amount should be paid to Amy when she sells Jamie's house?

What factors determine the amount payable to Amy in real estate transactions?

Answer:

The amount payable to Amy when she sells Jamie's house would be determined by their agreement or the customary commission rate, typically a percentage of the sale price.

When Jamie authorizes Amy to sell his house but does not specify the compensation payable to Amy, the default assumption would be that Amy is entitled to a reasonable and customary commission for real estate agents in that particular market. Real estate commissions are typically calculated as a percentage of the sale price of the property.

The specific percentage can vary depending on various factors, such as the local market practices, the complexity of the sale, and the services provided by the agent. In many cases, the standard commission rate for real estate agents is around 5% to 6% of the sale price, but this can vary.

To determine the exact amount payable to Amy, it would be advisable for Jamie and Amy to discuss and agree upon the commission rate or seek guidance from a real estate professional or legal advisor.