What commission split should a new agent expect from broker?

Question

Im an investor and just got my real estate license in New Jersey, thinking about signing up with a broker but i dont know what kind of commission split i should expect some people say they get 70/30 some say they get 50/50 im not really interested in paying too much commission as i will be flipping houses. Is there any investor friendly agencies or am i stuck with a 50/50? Any recommendations on how to approach the situation?

Michael Lee · Answer

Hi @Yavuz Bayram

Every broker is different, and it also depends on what you're needs are. Do you need any support from their team? Training? What else do you plan to do with your license?

Some brokers give training, start you off at 50/50, and move you up as you do some transactions. Some start you off at 70 and give no support. There are some brokers that charge only desk fees / EO insurance and monthly fees and you keep 100% commission. If you're looking for smaller brokers and non-franchise ones, I believe they are more flexible, and everything is negotiable. If you tell them what you will be doing, most can accommodate. Good luck!

Christopher Phillips · Answer

@Yavuz Bayram

You can join a brokerage that gives out 100% for a flat fee per transaction. There are still costs being associated with a brokerage like E&O and compliance stuff.

However, with 100% payout, don't expect any support. 100% commission outfits are more for people that already have experience and want to work on their own...