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Whats the average commission split between a broker and an agent..??

  • April 05 2012 - US
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Answers (9)

Best Answer

50/50 to start at most franchises, then negotiable depending upon experience. 
  • April 05 2012
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Profile picture for srscore
The problem with the current world of commission splits is that the agent is trying to hard to get too much of each deal, without thinking through the business economics of keeping the brokerage open.  If you are working in a fee model where you pay the brokerage a few hundred bucks and you keep the rest - how long can the business thrive?  and, when the business volume picks up, can the brokerage afford the support costs demanded by agents?

Agents need to consider that if they can work on a pure split (without the same soft costs (gas, paper, time driving around, delivering flyers - all things that cost money) they will find that the agent will yield more net dollar in a 70/30 plan that in a high 95/5 or similar plan, AND, the brokerage can keep monthly fees lower (<$150).
  • June 17 2013
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Profile picture for Mary RoseDeAngelo
I am selling my house myself but am offering a 4% buyer agent compensation. IN that case does the agent have to split with anyone if there is no contract?
  • September 17 2012
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New agents may start at 50/50, seasoned agents may depend on their sales record.
  • April 06 2012
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Profile picture for Connie Klemme
it varies wildly.
I've seen it 45/55 and 95/5
then there are those no split places where the agent pays an ENORMOUS about of office fees and keeps all their commission.

Plus there are many other factors like maybe the office gives a great split to the agent and charges them for every piece of paper they use etc.
It's all relative and all subject to local conditions etc.  comparing from one place to another isn't apples to apples so getting an average would be extremely difficult to do.
  • April 06 2012
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Hi - In my experience new agents start at 50/50 split along with e&o insurance and maybe printing costs.  Each real estate company has a different  commission structure. Back in the day agents didn't have alot of choices when it came to commission splits with their brokers.  In the past ten or so years smaller real estate companies have opened  and offer agents better splits.  Some companies offer a fee per transaction with no office benefits.  I think a new agent benefits from a larger company and the training they provide.
Cindy Schlee, Realtor
[phone number deleted by Zillow moderator.  Please see our Good Neighbor Policy]
  • April 06 2012
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You have to take into account what resources the Brokerage offers the agents. Are their desk fees, marketing, so they give you signs, a website, or other valuable tools? If so, are they free or are there substantial fees that you will be required to pay? Because its different with every Brokerage, office, or team, its nice to have the flexibility of a negotiable commission split. Evaluate it the situation carefully and decide what is right for you.

  • April 06 2012
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I think that just like there is no average brokerage fee (it's always negotiable), there is no average commission split.  With that said, previous posts are correct.  Anywhere from 50% to 100% with $0 monthly or transaction fees to hundreds or maybe thousands per month/transaction. 
  • April 06 2012
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Profile picture for Cindy Quinton
I would say everything from 50/50 to 100/0, of course the "costs" change with the options. If you are gong to become a real estate agent, you should investigate the options with the same dillegence that you would when begining any other business. You need to decide what your business model will be, what time and money commitment you plan to make, and what level of business you plan to pursue.
  • April 05 2012
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