What total commission is paid by the seller when a property is listed for $73,000 and sold for $69,500 with a 7% commission split?

To determine the total commission paid by the seller, it's essential to compute the commission based on the sale price of the property instead of the listing price. The property sold for $69,500. With a commission rate of 7%, the total commission is calculated by multiplying the sale price by the commission rate:

Total Commission = Sale Price × Commission Rate

Total Commission = $69,500 × 0.07

Calculating this gives:

Total Commission = $4,865.00

This confirms that the correct answer is indeed accurate, as it reflects the commission based solely on the amount for which the property was sold rather than the initial listing price. This distinguishes the importance of using the selling price to ascertain the applicable commission.