Iowa Real Estate Practice Exam

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Prepare for the Iowa Real Estate Exam with our comprehensive quiz. Study using flashcards and multiple choice questions, each complete with helpful hints and explanations. Ace your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the standard commission rate that a broker could expect if the owner agrees to a 10% commission on a $10,000 listing?

$1,000
$500
$1,500
$2,000

The correct answer is: $1,000

To determine the standard commission rate that a broker could expect in this scenario, you take the total value of the listing, which is $10,000, and apply the agreed commission rate of 10%. Calculating this involves multiplying the listing price by the commission percentage: $10,000 x 10% = $10,000 x 0.10 = $1,000. This result indicates that the broker would earn a commission of $1,000 for the sale of the listing at that price and commission rate. Understanding commission calculations is crucial for real estate professionals, as it directly influences their earnings and the agreements made with property owners. The other options do not align with the correct multiplication of 10% of $10,000, which is why they do not represent the correct commission.