Idaho Real Estate Practice Exam

What aspect of a listing typically influences the commission split offered to a cooperating broker?

1. The total number of listings managed by the brokerage

2. The market value of the property

3. The commission split the listing will offer a cooperating broker

4. The company's previous overall sales performance

The correct answer is: The commission split the listing will offer a cooperating broker

The commission split offered to a cooperating broker is primarily influenced by the specific commission split that the listing agent decides to offer. This includes how much the listing agent is willing to share from their commission with the broker who brings in the buyer. The listing agreement typically outlines this commission structure. A higher commission split can attract more cooperating brokers and increase the chances of selling the property, as it serves as an incentive for them to show and sell the property more effectively. While other factors like the market value of the property and the brokerage's performance may indirectly affect the overall dynamics of commission structures, they do not determine the specific terms of the commission split in the same direct manner that the agreed-upon split does. The total number of listings managed by the brokerage would have a more peripheral influence, if any, on the specific commission offered for a single property listing.