Real estate agents care about commission splits. Like a lot of other sales positions, agents don’t take home a steady, guaranteed income — instead, they make money based on the volume and price point of the homes that they sell. However, most brokerages don’t allow their agents to take the full amount of the commission. In these instances, the broker takes a cut of the commission for each sale and uses that money to pay for upkeep, training costs, and licensing fees.
However, there is no standard split in real estate. Each broker-agent agreement can have a different rate, rather than there being a set amount that each real estate company takes from all of their employees.
It might not be surprising, then, to hear that a lot of agents are interested in learning which real estate company has the best commission splits. There are other factors that go into choosing a brokerage, of course — things like having the best real estate training and excellent support — but those are secondary to potential earnings for many professionals.
With that in mind, we decided to put together a Real Estate Commission Split Comparison, where you can check out a ranked list of which brokerages have the most agent-friendly commission models!
#5: Compass Real Estate
Unlike some other companies, Compass is not very forthcoming with their commission information online. Part of the reason for this is because there is not a universal rate that they split with agents. Instead, splits with Compass are based largely on an agent’s experience level and negotiation acumen — meaning that newer agents might end up with an unfavorable split!
The reason that we placed Compass lower on this list is because of the uncertainty of their commission split. While it’s true that you might be able to negotiate a favorable rate, there is no guarantee!
#4: Century 21 Real Estate
Century 21 is a popular broker among real estate agents, with many professionals hanging their license in one of the thousands of brokerage centers around the globe.
Despite this, Century 21 offers relatively low commission split options for their agents. The primary plan consists of a 50/50 split between the agent and brokerage, as well as a franchise fee.
This means that an agent takes home just half of their total commission on each deal — and then, depending on the arrangement they have with their local brokerage office, they might have to pay an additional 8% as a franchise fee!
Part of the reason that Century 21 offers such low splits is because they usually do not charge a desk fee for their agents, which can be beneficial for some newer real estate professionals. However, like with Compass, there is an element of uncertainty there. Because Century 21 is a decentralized, franchise-based brokerage, each local broker office might have different policies regarding desk fees.
It is important to note, as well, that some agents who stick with the brokerage for long enough can sometimes get more favorable splits, but it is not a guarantee.
#3: Keller Williams Realty
Compared to the 50/50 splits of Century 21 and other “traditional” brokerages, the commission model of Keller Williams might seem like a breath of fresh air. At Keller Williams Realty, the standard rate is a 64/30/6 split. This means that, after paying any hidden transaction or brokerage fees:
- The agent gets 64% of the commission fee
- The local broker gets 30% of the commission, to cover recurring costs such as insurances and office expenses
- Keller Williams International, the central franchise, gets 6% on each commission
In addition to these splits, agents also pay a monthly or yearly desk fee to cover costs of transaction support and other administrative tasks. The exact details of this desk fee are not mandated by Keller Williams International, so each local franchise can set their own rates.
After a certain sales point, referred to as a cap, agents begin to take home more than 64% of their commission. The most standard cap for Keller Williams is $100,000 of gross commission — if an agent can gross $100k on the year, any subsequent commission will not be split.
While this model is attractive to many agents, it also tends to encourage internal competition within the brokerage, which means that this might not be the best real estate company for part-time agents or new real estate professionals.
RE/MAX, which stands for Real Estate Maximums, was one of the nation’s first high-commission brokerages. They boast an enviable split of 95/5, meaning that agents can take home nearly all of their commission and share just 5% with the broker.
As a tradeoff, RE/MAX agents pay a larger desk fee than professionals who work with Keller Williams to cover administrative costs.
However, not all RE/MAX real estate agents receive a 95% commission check. There are alternative payment plans, called the RE/MAX Alternative Payment Plans (RAPP), which are closer to the splits offered by the brokerages that we mentioned above.
Under the RAPP system, agents can be placed under an 80/20 split, 70/30 split, or 60/40 split. If an agent chooses this option, the costs that they would put into a monthly desk fee are instead taken out of their commission splits.
#1: beREAL (100% Commission Split)
You simply cannot get a more favorable commission split than the ones offered by beREAL. Under our 100% commission model real estate model, you get to take home 100% of your commission check — so you don’t have to worry about splitting it with a local brokerage or central office!
In addition to this, beREAL agents aren’t required to pay the expensive broker fees that some other companies put on their teams. Instead, you just choose one of two simple, flat subscription programs!
The monthly or yearly subscription charge covers all of the costs that come with being a beREAL agent. As part of the deal, you get world-class legal and transaction support, customizable marketing materials, and the nation’s best real estate training from the HyperFast Academy.
So if you are ready to make the switch and get the most out of your real estate career, then it’s time to join a 100% commission Real Estate Company! All you have to do is click here and schedule a time to speak with one of our recruiting partners today!