Which Brokerage will help you put more money in your pocket?

Question

Hello BP,

I am a real estate agent in Bergen County. I predominately work in listing my own properties, as I am also a developer, as well as a group of investors. I am at a moment in my career that I am evaluating whether to leave my brokerage for a better long term one or  negotiate a better split.

I am currently at Coldwell Banker. I have a gnenerous split . At my current situation I only have the Franchise Fee of 6%. I dont have any desk fees or any other fees.

I have produced listings that range from 300K-1,999,999 over my last three years with Coldwell. As the years go by I increase my listings a year by 1-2.

If anyone could give me advice on what is the best way to make a decision where I wont regret leaving Coldwell I would greatly appreciate it

Thank you Dave

Ed Andrea · Answer

I am not an agent, I do the marketing and admin for Realty Executives in Bellevue, WA.  I have to say the agents here make 100% with no franchise fees and only a small per transaction fee, and make more money per transaction than any other franchise I am familiar with.

I spent over 20 years doing real estate websites, and am semi-retired now. I have worked with hundreds of agents in every major franchise, and lots of boutique agencies. I've never seen a simpler, cleaner low cost fee structure any where.

I don't know if the Realty Executive franchises there have the same deal, but I suggest you check it out.

Kevin Hill · Answer

@David Michael $5 million works for RE/MAX! There is a newer RE/MAX office in your town of Closter. I work out of the one in Westwood.

Mike Cumbie · Answer

Hi David,

Each office is independantly owned and operated. So you would have to check with the specific offices in your area. We currently have a 70/30 and a 95/5. Some offices have 10 different split options. If you are on a 94/6 with no fees, it sounds like a pretty solid gig to me, but each area is different.

Good Luck in finding the right fit!

David Michael · Answer

Hey Kevin! Thanks for the information !my volume is about 5M Is that sufficient for Remax?

Kevin Hill · Answer

There is a 100% commission brokerage called United Real Estate. They have an office in Fair Lawn and a new one coming in Ramsey. I believe they just charge you per transaction. Many of the agents I see going there, aren't well established agents and I wonder myself about the business model sustainability.

Keller Williams has a 70/30 split. You pay a 6% royalty until you cap on that. I believe you cap at around $3000, then its a full 70%. Once you hit a sales volume of around $4.9 million (don't know if you are selling that much, you get a 100%. You pay $30 monthly for E&O insurance and $35 for a technology fee. They offer profit sharing if you recruit other agents and they produce and the office is profitable that month.

I left KW and I am at RE/MAX. They have different commission split options that come with various desk fees. They have 70/30, 80/20, & 94/6 split options. I would only recommend RE/MAX if you are doing a decent amount of volume.

Hope this helps.