Real Estate Agent Commission Split

[Joe L.]

Hi everyone - I am in the process of finalizing my pre-requisite class hours to take my real estate license exam. None of the teachers at the school  want to throw a number when we ask what is a reasonable expectation for a new agent in their first year to get from their broker in terms of commission split. Understanding that there are endless variables (ie big name broker vs small, desk fees vs none, will they provide training vs limited, etc.) but can anyone provide me a reasonable expectation for a first year agent? Is it 50/50? Is 75/25 or even higher unheard of? I just need a sense going into my first year as I talk to real estate firms.

I'm completely in the dark on this and when I ask the instructors to give something, they always punt on the answer and they say every fee is negotiable. While I certainly understand that to be the case, I really don't have any expectations on fee commission split for first year agents. Any help will be appreciated!

[Bruce Lynn]

Interview 5 brokers.   Split is probably at the bottom of the list to worry about.

Worry about training ...how much they offer, when, and at what cost.

Get a feel for the culture of where you fit in.

Don't get fooled by brokers that pitch 100%....no one is 100%.....broker has to make money.  I would run from anyone pitching you that.

#1  Ask to see the training room....no training room, no training....you want some live training....not all online.

#2  Ask to see the training calendar....no calendar....no training....

#3 Ask how much it costs.

Your split could be any of the above depending if you join a team, on your own, small or large brokerage....

[Benjamin Fritz]

I started with Keller Williams over ten years ago.  I have since then gone off on my own and then with a local Commercial Broker.  But I think I remember a 80/20 split, and after company dollar was hit 100%.  KW did a great job training me and helping me get started.  Maybe a KW agent can back up what I am telling you.  Good Luck!

[Marian Huish]

@Bruce Lynn is correct in that there are many other factors you should be considering as a new agent @Joe L. (and why don't we see your last name?  ...will be important to include here if you want to start finding some investors to work with on BP!  ; D).  Many of the 'bricks and mortar' will start you at 50/50 because they do require in-office training and 'hand-holding' by the broker as you are a potential liability as a new agent.  I was with Long and Foster (a private brokerage in the Mid-Atlantic area) for 15 years and each year my split re-set...back to 50/50!  So even after an experienced/seasoned agent, my commission sales only grew as my production grew.  I eventually got to 80% split each year but couldn't justify paying that much as I wasn't one to work much in the offices which is why low splits were necessary... to pay for those offices!   I have since moved to eXp Realty which offers all agents an 80/20 split, which then moves to 100% once you 'cap' after the company receives $16K on their side, or after roughly $2.6M. in sales.  ...and this also resets every year.  However, for new agents, you are required to have a Mentor which means you will have a 60/40 split on your first 3 transactions.  Also, you can alternatively join a team and have more 'hands-on' guidance for as long as you like- you would agree to whatever split the team lead offers.  Some have offices and some meet in our virtual World- which is where our 'training room' is located (as Bruce referenced).  And here's a link to our weekly training schedule for you to review. 

https://expcloud.com/calendar/...

I'm happy to offer you a guest pass in to our office so that you can review our 'training room' and attend some classes for up to 2 weeks.  Perhaps that can help you decide if eXp would be a good fit for you... I'm not sure other brokerages offer such an opportunity!  Anyhow, best of luck in your decision and good luck on your exam.  Marian