Real Estate Agency Commission

2 Replies

We have been listening to some advice about changing commission structures for real estate agencies. We want to hear from you. What are some fair commission structures between agents and the agency? What are some agents willing to give up to achieve a deal? What are some things that agencies should be willing to lose in order to cater to their agents?

Each broker has their own commission schedule. You have to determine what works best to make a profit for your own business. The brokerage that I work for has a 70/30 split up to a certain amount (around 20,000), then we get 100% of the commissions. We agents pay 100% of our expenses (ie cards, signs, marketing, etc). There are other agencies that take a permanent high (ie 50 or 60) percentage of each transaction, but pay for much of the agent's expenses. A friend of mine who is a rainmaker recently got a deal to move to a major brokerage where he got to keep 95% of his commissions.

If you can find out what other local brokerage agreements are, then decide what you can afford to do to attract top producers to you. You will not survive with 50 low producers and only 2 top producers.

I guess what I would look for is how much I have to pay my broker in commissions then how much support I would get in terms of education and coaching.

Just to reiterate, having a brokerage is a business. What you offer to agents has to align with you making a profit, as you don't benefit anyone by going out of business quickly.

A great option for agents and licensed investors is to go for a flat fee Real Estate Brokerage.  We at am-luck charge $350. flat fee per transaction there are many companies with this form of structure.

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