Have you taken a look at your real estate company’s performance?
This is that time of year where brokers and agents are looking at their sales, revenue and commission numbers. This is also the time when a number of brokerages evaluate and reset their commission structures.
So, we thought this will be a good time to list some of the top commission structures and schedules used throughout the real estate industry.
Our survey of real estate brokers suggests that these same schedules will be used in the coming year.
Set percent split between broker and agent
100% Commission + Agent to Pay Transaction Fee
Agent gets 100% and pays broker a set dollar amount for the transaction
Sliding Scale Commission Split Based on Company Sales
Agent split is based on his/her sales volume (higher sales = higher split)
Sliding Scale Commission Split Based on Number of Sides
Agent split is based on his/her number of closed sides
Sliding Scale Commission Split Based on Broker’s Gross
Agent split is based on broker gross earning of agent’s deals
Sliding Scale Commission Split Based on Broker’s Net Gross
Agent split is based on broker net gross earnings of agent’s deals
Sliding Scale Commission Split Based on Previous Year Sales
Agent split is based on his/her previous year sales sales volume
Base Salary + Fixed Percent Commission
Agent receives salary plus a percent of the commission
These are the more popular schedules used by real estate brokerages; however, there are other options that factor into an agent’s commission split; such as: leads provide by the broker, number of years working at the brokerage, referrals, etc.