On what is Gross Commission Income based in the Economic Model?

Gross Commission Income (GCI) in the Economic Model is generally calculated based on a percentage of the sales price typically received at closing. This percentage is often standardized in real estate transactions and for many agents, a common figure used is 3% for each side of the transaction—both for the listing agent and the buyer's agent.

By selecting the answer based on a 3% commission for each side of the sale, it reflects a widely adopted practice in the industry, serving as a foundational benchmark for estimating potential earnings from sales. This percentage can be scaled depending on the sale price of properties, making it a logical choice for understanding Gross Commission Income within the model's context.

The other options, while they represent different commission structures, do not align as closely with the typical commission framework used in evaluating GCI. A flat fee per transaction neglects the proportional relationship between commission and sales price, variable rates can add complexity and variance that can deviate from the standardized practice reflected in the typical commissions.