Which of the following best describes a broker's commission?

A broker's commission is typically calculated as a percentage of the sale price of the property. This method is common because it aligns the interests of the broker with those of the seller—the higher the sale price, the more the broker earns. This percentage is agreed upon in the listing agreement at the outset of the transaction and is based on the value of the property being sold.

Calculating the commission in this manner also provides an incentive for the broker to negotiate the best possible price for the seller. It reflects the broker's effort and expertise in securing a successful sale, making it a standard practice in real estate transactions.

While other aspects like fixed amounts or market conditions may influence how the commission is set, a percentage of the sale price is the industry norm and most accurately describes how brokers typically earn their commission.