On a $100,000 home, the listing commission would be $7,000.

Listing Broker 1.75% = $1,750
Listing Agent  1.75% = $1,750
Selling Agent  1.75% = $1,750
Selling Broker 1.75% = $1,750

From the listing agent's 1.75% portion comes.

1. Income Tax/Social Security Taxes for employer and employee (often as much as 35-40%)

2. Advertising expenses for the homes: TV, internet, direct mail, newspapers, brochures

3. Staff Salary

4. Postage and office supplies

5. Equipment - computers and software, fax machine, scanner, copier, digital camera, office
 furniture

6. Cell Phones

7. Real estate Board dues and MLS fees

8. Automobile expenses such as oil, gas, maintenance

9. Technical support for computers and software

10. Education/Professional conferences