What's the commission split at your Real Estate firm?

There must be many variations to how moneys are allocated. RE Offices are independently owned and operated and this also means most have customized their own commission structure. Most beginning RE Agents can not afford the non traditional split fees so they start with a structure closer to the traditional split. I was with RE/MAX but I was on a traditional split agreement not the "Full Commission" split. RE/MAX pioneered the “full commission” splits…meaning they were the 1st brokers to revert to allowing Real Estate agents to keep all of their commissions. In exchange RE/MAX set up recurring expenses or monthly itemized fees. Nowadays there are different offices offering their own versions of full commission splits. There are too many variations to list but fee structure is just as important. Each plan will have its own fee structure. What these fees are and what they cover will be in detail in the contract or proposal. Above is my formal answer and below is my personal advice. I truly believe that for a beginning RE Agent one should choose an office that will encourage education, growth and development. Do they offer a training program, direct involvement and or mentoring. Your goal is to evaluate which office is best at helping you develop into a “producing agent”. It is not about keeping the biggest portion of the commission rather it’s your ability to repeatedly get to the settlement table that is most important. In other words… what is better 90/10 split and going to settlement 2 times in one year or 50/50 and going to settlement twice a week? Which option puts more money in your pocket sooner? You can evaluate things later in the future. Promise yourself that after a year or 2 that you will analyze your situation and entertain other brokers. In hindsight I would have happily accepted a 20% commission to be an apprentice to a top agent or Broker. There is tremendous value in being able to shadow someone daily activities.

Commission splits are negotiable and commission schedules vary differently, even among franchises like CB, CENTURY 21 and/or Re/Max. The liability to the real estate broker and the amount of training required to develop you real estate skills will mandate a lower starting split. Now, if you have a proven record in sales and/or you have a considerable sphere of influence that you can prove will turn into transaction quickly then you may be able to negotiate a higher starting split. To be honest, although splits are important, you need to really think of where you want to be. Most newer agents will trade off a lower split for great training and availability of their broker or manager to develop a business plan and keep you accountable. 70% or more of no business is 0. In addition, there are companies that will begin a higher split to begin with but you are on your own and everything is an expense. Ultimately, agents realize under these plans that they are at a typical split and don't have the resources available to them to thrive. Talk to several brokers and focus on the resources they offer that will help you become successful. A split is just one part of a very big picture.

Just starting out you will probably get 50/50 or maybe 60/40 depending on which state you are in and the company. I am RE/MAX - 95/5 but I pay all my own bills, ads, dues, everything including desk fee. Was with C-21 - got 60/40 but they paid for everything. Good luck!

Typically if you new to the business your not going to be able to negotiate a higher split. If your bringing business to the table and have a client list, that might be another story. Most agents I know get 70-80% but it depends on what the company pays for. C-21's are franchised so they vary too. If they pay for E&O Insurance and advertising as well as give you floor time. I would expect as a newbie to get 60%- as you get better and are doing more business they usually increase to 70%. Hope that helps!

check out www.weichert.com see if they are in your area yet. great training and 70/30 splits.