Real Estate Agent Commission Split

As a realtor you have to be aware of the importance of the real estate agent commission split to your income potential and while the options vary from broker to broker you certainly want to strive for a full commission split with no strings attached. This is how top agents make more money. Have you ever heard of a real estate superstar who leaves 30% or 50% of the money to the real estate broker? I haven’t and you probably haven’t encountered that either. So let’s try to dissect what is behind that arrangement allowing broker to take percentage of your income from each and every transaction.

real estate agents commission split comparison chart

The Story Behind The Real Estate Commission Splits

By law every agent has to operate under the real estate broker to ensure accountability for real estate transactions. If you happened to be a seasoned real estate agent you may want to take real estate broker courses and pass the exam which will allow you to operate independently. Until then you must operate under the umbrella of the particular real estate broker.

Because such arrangement exists, it is broker’s responsibility to ensure that each real estate transaction is conducted properly in accordance with all laws and regulations, and as we know there are quite a few, and all the paperwork is flawless. That also entails the fact that real estate broker takes the time to check all the paperwork, participate in its processing and provide an agent with documentation, support and advice and even encouragement which may include pep talk if need be. Also, brokers provide with office, staplers, water cooler and many other essentials that frankly most real estate agents can do without. All this doesn’t come free and broker has to cover his real estate operations overhead. We should point out that most brokers don’t fiddle with paperwork all day and most of it done by the staff which adds to overhead. Anyway you flip it, real estate broker has to cover all the expenses and that is why real estate agent commission split is necessary to maintain the healthy balance between real estate agent and a broker.

Are Real Estate Compensation Splits Fair?

That is a good question if we take in consideration the fact that no one asks a real estate agent how much of real estate commission split he or she would like to have when they start working. Usually it comes as a package although some brokers have option A and option B where both options at the end of the month end up being the same. Well, it is fair considering the fact that you always can go across the street and work for a competitor. That keeps things in balance except for the fact that if you are working on 50% commission split with broker Bob, broker Janette is not going to give you 100% because she also has her overhead to pay for.

But wait a second! There are some real estate agents out there, you know the local real estate kings and queens who are getting paid full commission split and they will get that split grade everywhere they go! Are we talking discrimination here? Not at all. These agents happen to sell a lot of real estate. Their brokers are very fortunate to have such elite working with them. Read the next paragraph and you will learn why.

The Genius Behind 100% Real Estate Commission Split

These agents sell a lot of real estate and they are being held in a very high regard by their brokers and clients. Their abilities and experience is an asset to any broker because they bring more clients, more sales and more commissions. In real estate people who sell more also keep more not just in volume but on each and every transaction. They deserve it.

Real estate brokers charge superstar agents broker fees office fees and may be some other fees but they give up 100% commission to their best agents. And if they don’t that competition across the street will. This simple free market rule has been proven to work very well for both brokers and agents.

Now, let’s look at the possibility of you making full commissions with a broker who gladly will give it to you, even you just passed your realtor exam last week. Yes it is possible if… you can sell real estate.

How Your Actions Can Improve Commission Split You Are Getting Now

Being a real estate agent you know that real estate business is not for the faint of heart. It is not for procrastinators and office rats. But it can be very lucrative for people who are on the go, who always prospect, who knows how to sell homes and get clients. What it comes down to, real estate is for people who don’t like sitting in the office. Yes, this may be a startling revelation for some but this is the reality of life. So, here are tips how to make more sales and get that commission split you always wanted:

  1. Don’t waste your time in the office!
    If you heading to your broker’s office there better be a good reason for that. What’s the good reason? Your client wants to come in for signing. Are you going to the office to check your messages? If that’s so, real estate may be is not for you.
  2. Always prospect.
    Learn the best prospecting techniques and keep improving them. At least two hours of your work day have to be dedicated to most effective prospecting that has been proven to work in the past.
  3. Do not be discouraged because real estate market has changed.
    Yes, people buy smaller homes, yes, there are fewer buyers on the market, yes there are real estate inventory excesses. If you keep prospecting you can make a good living. Do you know of any legal industry that is booming? We don’t. Your emotional disposition has a great affect on your income because you work in sales.
  4. Know your local real estate trends and all the factors that affect realty in your area.
    Use this information to adjust your prospecting. Use internet extensively and keep promoting your website – it pays off well simply because most of the people are looking for answers to their real estate needs online.
  5. The more money you make the better you feel about yourself and perform.
    When you are confident people tend to gravitate towards you and things happen. Consider start getting paid 100% commissions today this will help your income instantaneously and likely to boost your sales in the long run.

All these actions increase real estate agent’s productivity which in turn favorably affects your ability to increase your commission split. If you happen to sell homes in California, you should seriously consider an offer from Dynasty Online where all agents receive 100% commissions from the very first day of employment. Simply click on a sign up form and fill out a short online application or contact us via phone or email.

How Real Estate Agent Commission Split Affects Your Income? Comparison Table

50/50% percent split
30/70% percent split
Dynasty Real Estate
100% to all agents
If you are making in 110,000 ANNUAL COMMISSIONS
$55,000 $77,000 $110,000
If you are making in 60,000 ANNUAL COMMISSIONS
$30,000 $42,000 $60,000
If you are making in 30,000 ANNUAL COMMISSIONS
$15,000 $21,000 $30,000

This table shows how much money a real estate agent can make with various real estate commission splits. It may not necessarily depict your situation because of the variety of factors involved. Different brokers have different fees, home pricing varies by geographical areas and of course income largely depends on agent’s ability to sell real estate. However, all things considered, if you split your commissions with your broker, you take home smaller checks. These numbers do not include broker fees because these figures vary from broker to broker.

In conclusion, real estate agent commission split doesn’t have to be a three-year goal if you just starting in real estate. It can become a reality today and help you during these financially challenging times. We can and we will help you with training, support and assistance you would get at traditional broker’s office. We do not have minimum sales quotas butyou need to stay active and motivated.Our commission structure will help you to make more money and that should be a great motivator for you to do your best.