When you dive into a professional real estate agent career, you first must learn all the different terms and facets associated with the job. In addition to getting your real estate license, marketing campaign, and an official website, you will need to learn about some regions of the job to enter the field from a well-informed standpoint. One such area is the real estate broker commission.
Commission splits are something most agents don’t know much about before they start their careers. However, its essential to learn more about commissions since they could significantly affect how much money you make as a real estate agent.
What Is A Real Estate Commission Split?
Selling yourself, doing marketing, and establishing yourself as a professional in real estate is only the start. Once you sell real estate, you will use all your skills to satisfy your clients. However, most agents just getting started in the field don’t fully understand how different commission structures work.
Knowing how you get paid after you sell a property is a critical factor to consider. Understanding different types of commission splits will also help you narrow your search to brokers who best fit you.
Your commission split will determine the total money you can expect from each sale. The commission is often divided between the broker and the agent working on the sale. However, there are several ways these percentages are worked out. Today’s blog will dive into the top two commission splits to help you understand how much you get paid.
Traditional Commission Splits
Real estate commission splits are a predefined way to divide the earnings from a transaction. Generally, agents and their brokers share the total commission the seller pays. The standard commission rate could vary, but it is often around five to six percent of the property’s sale. A traditional commission split, like 70/30, means that you, as the agent, will get to keep 70% of your total commission earned while your broker gets 30%.
The broker oversees your transactions and ensures you stay compliant with the law. They offer you training, support, and resources and get a portion of your commission. As an agent, you will focus more on running ground tasks like buying, selling, and facilitating transactions.
While agents rely on the infrastructure provided by their brokerages, they usually cultivate client relationships and work hard to close deals. If you feel like you are working way too hard to have your commission split with your broker, maybe you should consider joining a 100% real estate broker commission model.
100% Commission Split
In this compensation model, you will take home 100% of your commissions by paying a monthly office fee or “desk fee,” along with a small transaction fee for each sale you make. While this might seem like an additional expense, you must remember that it allows you to take home more money than you would with a traditional real estate broker commission split. Check out the image below to better understand how a 100% commission split differs.
As you can see, a traditional brokerage that offers a 90/10 commission split will ask you to pay $2,400 for a $24,000 transaction, while a 100% commission brokerage like NB Elite Realty will only ask for $849!
Moreover, at NB Elite Realty, we provide all our agents with support and training programs to help them perform better on the field. Our founder broker, Nebo Bandovic, has years of experience dealing in real estate and can give you tips on how to better control your career and achieve your long-term financial goals.
We will also tell you how you can use all this extra cash to make more money by investing it back into real estate. Want to find out more about NB Elite Realty? Please speak with our team today for answers.
NB Elite Realty: The Brokerage You Deserve!
If you work too hard and do not get enough in return, consider joining a 100% commission brokerage like NB Elite Reality. Our founder and CEO, Nebo Bandovic, has spent years dealing with all types of investment and residential properties and can easily guide you to success in no time. If you want to learn more about how a 100% commission split works or want to join our team, please call us at 844-444-6237. Our team will be more than happy to address your concerns.