2006-09-07 16:41:25 · 6 answers · asked by helmsshelia 2 in Business & Finance ➔ Renting & Real Estate
Are you referring the the broker in charge (BIC) or someone who has their brokers license but is not in charge of the office?
Everyone else is answering based on BIC so I will as well.
When you affiliate with a firm you negotiate your independent contractors agreement with them. That is what will determine your split with the firm. For example: If you have negotiated a 50-50 split you get 50% and the firm gets 50% of the commission. If you have negotiated a 70-30 split you get 70 and firm gets 30.
Some firms work on a 95 or 100% percent split but the licensee pays a desk fee on a monthly basis or commits to pay a certain amount to the firm for the year.
Some firms work on a flat fee per sale to the agent. This is usually the discounted brokerages. I am aware of one company that only compensates the licensee with $600 per transaction.
It all depends on how the firm operates and what the licensee agrees too.
In most cases the BIC does not receive the firm portion of the commission. The firm gets it and pays the BIC a salary plus an override of what the office produces or the net income to the office.
Most companies do not negotiate their splits just as they will not allow their agents to negotiate commission rates.
2006-09-07 23:38:56 · answer #1 · answered by Karen R 3 · 0⤊ 0⤋
In my area the standard commission is 6% with half to the listing broker and half to the selling broker. Agents work under the supervision of a broker and get paid by getting a split or share of the commission. The amount of the split varies from broker to broker and usually is based on the agent's production. A new agent would start at a 50/50 split with their broker and work up to an 80% or higher split. Agents therefore usually make more than the broker on a single transaction, but don't forget the broker is getting a share of what every agent in the office produces.
2006-09-07 20:32:49 · answer #2 · answered by Anonymous · 0⤊ 1⤋
It's negotiated. The broker might get maybe 50% of the commission, or the agent might pay a monthly fee to the broker and not have to share the commission.
2006-09-08 01:39:09 · answer #3 · answered by Barbwired 7 · 0⤊ 0⤋
I know that when I was house shopping with my broker the online listings he had access to had the amount that the broker gets. In our case I believe the broker and the listing agent both got 2%
2006-09-07 16:52:26 · answer #4 · answered by walkerhound03 5 · 0⤊ 0⤋
I bought my living house in December and paid 6%, do no longer forget approximately what's in touch on your agent's end. there's a lot of artwork to do, he will pay for any and all advertisements and then whilst the living house does sell your agent will likely chop up the fee with the clientele agent meaning that at 3% your agent is making below a million a million/2%. i think of 6-7% is hardship-loose.
2016-10-14 10:53:48 · answer #5 · answered by pachter 4 · 0⤊ 0⤋
If there is two agents and 2 brokers, each agent gets 2% and each broker gets 1.5%.
2006-09-07 16:44:30 · answer #6 · answered by searay092003 5 · 0⤊ 1⤋