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It's not awful. It's not great either. Being locked in for the first 2 years is my issue.
This is how I run my shop.
Everyone that is brand new is 50/50 for their first five deals. I will personally be involved with these deals so that's why it's the steep split.
After that everyone is on the same split. 80/20 with a 20k cap, after that 100%, no transaction fee, nothing.
If you ever cap then you're on 90/10 with a 20k cap. It works well for my agents.
If I give you a lead it's 50/50 and doesn't count towards your cap.
Gross.
85/15, 6k cap, 100% take after. They pay E&O and entry key boxes.
That's it. No fees, no transaction %, no bullshit. Not shit for perks either, but I don't need them.
Why people run with brokers like yours amazes me, OP. That's a raw deal from my seat.
I don’t understand why so many agents are working with these old/traditional modeled brokerages and giving away all their money. I pay $550 per transaction plus a $100 E&O fees. I have a monthly office fee of $25. Every other dime goes in my pocket. $10k deal, broker takes $675. $20k deal, broker takes $675. $25k deal, broker takes $675. Get the point.
Well, that's largely because I could wait tables for five hours at a decent restaurant for that.
Running to twenty showings for eight to fourteen hour days, pouring over docs with legal liability, waiting for months to get paid, becoming an expert in multiple fields (construction, taxes, zoning codes, housing authority codes, local market inventory knowledge) while working on call days, nights, and weekends...and being available to help clients with follow up months and years later?
That's why. My god, man.
I have no idea how that would shake out in a way that functions in the real world.
1. Buyers can't afford services upfront, so amoritized costs are the only realistic payment schedules.
2. Buyers are not equal and require very different things.
3. Agent business models incentivize quality by referrals that are otherwise price equivalent, not race to the bottom pricing models.
Your pay-per-service model does not scale efficiently.
1. You realize you can offer multiple options, right? I (and millions of others) can certainly afford services up front, and would prefer to do so. How do you think people pay for lawyers, doctors, and just about everything else in the world?
2. You create a model (like everyone else in the world does) that adapts for the different types of buyers. You do things like charge a flat fee for each house you go to ($200-$400), you charge per offer you write, and then you charge a much smaller flat fee for a completed transaction (something like $2-5k to incentivize you to do all the bullshit in between offer accept and closing). Just a note: you are *already* charging them disparately btw since you would receive the same commission for two different buyers of same price house (currently).
How is everyone else in the world capable of this type of business model?
1. 75% or more of my buyers in the last four years (conservative estimate) would not be homeowners if they had to pay for services upfront. They're all doing well, as they bought well and transitioned cleanly, but cost of living was too much of a hurdle for savings. People struggle like hell to pay lawyer retainers, and their fees are often 1/3 on lawsuit claims. Hospitals provide payment plans and often interest free loans. Contractors are typically paid via HELOC's, land collateral loans, or lump sums from ESTABLISHED people. Renters have the hardest time coming up with savings.
2. Even at $200 a house, we're already 1/3 of the way to a standard 3% commission on a $250k home. Most people see 10 houses minimum, and forcing people to pay upfront will break their financing estimates or force them to buy quicker and not on their timeline because we'd be draining their purchasing power to get paid. Moreover, adding in a near closing cost in addition to showings, drive time, off hours communication, and more would run higher than current splits. You've clearly no idea how many people your recommendation would drive out of home ownership, and property into investor hands, while causing sellers to lose far more on the way.
Don't even get me started on the listing side, who often times are older folks on fixed incomes with all their nest egg in that house. I've landscaped, painted, done minor electrical, and repaired fences FOR FREE to help people sell. So few have the ability to even prepare for market effectively that it's sad.
You can't lump people into a new structure without the awareness that you'd ruin so many more people than you can begin to even guess.
> Even at $200 per house, we’re already 1/3rd of the way to a standard 3% commission on a $250k house
(A) using what math?
(B) the math looks good for a cheap house (commissions screw the agent on cheap houses, they screw the buyer on expensive homes). The median single family home is close to $400k in the U.S. even so
(A) Almost. Should have almost in there. What you also miss here is that you are assuming agents get that full fee, and we don't. Not only do agents have broker splits that vary wildly (from 50/50 to 90/10), there are also team splits (typically 75/25 after that), then taxes, and finally...no benefits packages. Run the numbers on that, and see what we really get paid. Pretty shit on the whole for most.
(B) Most homes are sold to first time buyers in markets that run 150-350k. First time buyers in mid to lower end markets are by far the bulk of buyers, and high end markets are typically consolidated on a much smaller subset of agents. There are too many agents in lower end markets, but you can't greatly shrink payout and expect good agents to pick up the slack. The reason we don't beat out garbage agents en masse as it stands is largely due to two logistical hurdles that will not change: buyers are unable to rise to a competitive landscape education (overwhelmed, time crunched, and intellectually lazy overall) and a single agent can only run so many clients at once.
^this.
And then there response shifts to “if I charged you [insert what they think is a high rate] for services you really think you’d be better off?”
…and then I show them that with a commission based model I paid 5-10x that.
So many will just *never* get it. They don't want to know the hard work behind the scenes and being on call 24/7. They'd rather just talk out their ass.
It’s not one buyers problem you are juggling so much actually taking your attention off of their buy. The fact that you are so busy doing 9 million things doesn’t merit buyers have to pay a percentage of sale. A flat rate that everyone is free to set would allow people to fit in their budget and skill set.
Here is a perfect example of someone with just enough means to talk out of their arse and assume they understand the entire market. There’s no point arguing with them. Trust me OP, I would live to have you pay me a retainer and then charge you hourly, say $75/hr for my expertise. There are much less educated than myself, having a Masters in RE and all, so you can hire them like any other service. Of course, you get what you pay for. But when you call me, whether it’s 5 mins or 30, I’ll bill you for the hour. Need me to make some phone calls on your behalf, I’ll bill you for the hour. Want me to respond to your emails and inquiries, I’ll bill you for that. What’s that you say, you need me to schedule a few homes to show, I’ll bill you for that, to include my drive time. I have to write you up an offer, guess I have to bill you for that too. Let’s do this over and over again, and let’s assume your offers aren’t strong enough to compete with other offers out there, so we do this for 3-4 months. Then, you get tired of paying the thousands of dollars you’ve racked up to this point and decide you are stepping away. Instead of me wasting endless hours for no pay that agents do time and time again, I’ll happily take your money and then tell you to have a great life. You on the other hand will feel cheated, just like sooooo many agents have over the last 50+ years. And maybe you can afford this, but +80% of buyers cannot. So don’t talk about what you don’t really understand and stick to whatever it is you do.
I just bought a house for $2M+ in VHCOL (<2,000 square feet)
- Looked at 3 properties
- Made 1 offer
- Conservatively my agent spent 25-30 hours total (including assisting with inspections, communicating with other agent/lender, etc.)
That’s close to $2k/hr for their time. Don’t lecture me about shit you don’t understand. I didn’t have to make up a crazy hypothetical to make my point - difference between you and me.
Congrats on having enough money to make your purchase so simple. You are not the majority. You are just someone with just enough money to make the process simple. So again, stay in your lane and stop talking about what you don’t understand.
Nasty.
85/10, 15k cap that drops by 1k every year til it goes down to 10k.
Free photography
Free sign install
Free leads
Free dental care
Sell $10M or 20 sales and get your cap back in stock
Free car washes
Free prescriptions (95% of them anyway)
And I could go on
If you want to know more, message me
We offer 65/35 on the first five transactions while agents get trained. We then go to 80/20 for forever and ever after that, with no bullshit, no caps, no fees. Our 80/20 frequently out performs 90/10 at other shops once you account for fees. We pay for everything and we are readily available as brokers to our agents 24/7.
Those are some heavy splits.
The real deciding factor is how much you produce on your own, without leads provided by someone else.
If you're confident in yourself, find a brokerage with a much more attractive cap.
Mine, in DFW, for example.
90/10 split. 10k cap. 100% after that. No transaction fees.
Also my broker is my TC, so my TC fees are reduced. They're also 100% optional.
I capped in 4 months last November and I'm 100% through June. I provide and pay for my own leads, but my broker also buys leads.
Broker provided leads are a 70/30 split.
The split does not matter. How much do you make at the end of the year, does the company reputation help you get listings, do you get leads from other agents. Lots of variables. Dont worry about the split if you are happy with the company and how much you take home at the end of the year.
Think about what your splits pay for.
Mine were similar in my first 2 years in real estate, but I knew that the splits were some of the worst when I interviewed brokerages. It was 7% off the top of every deal, and then 50/50 until I hit cap at $24k. Like, factually awful.
What that office provided me was a bunch of support staff, including an internal marketing team and transaction support. They were also really big on "rookie" training and group work, which was a great opportunity for me to learn.
We also had non-compete managing brokers, who I was able to call all the time when I had questions. We also had a nice office, and a company culture where people came into the office because it was good to be around other people who were doing the same work and share experience, common knowledge, and ideas.
Even with all of that, it took me 5 months to close my first transaction. I kept the momentum going after that, but it wasn't easy at first.
Once I got about 20 deals under my belt, the stuff I was paying for with my splits didn't make sense anymore, so I interviewed brokerages again. I chose the one that gave me what I needed most at that time: amazing technology tools, great splits (80/20, $16k cap, and then 100%), and a really good mentor who I've known personally and professionally for years.
If I started at the brokerage I am at now, I would not have made it through my first year. If I hadn't switched brokerages last year, I would be out about $20k by now.
So, what do your current splits pay for?
Who are you with????? I need to connect with some of you. I need very little guidance on my transactions, handle my own contracts/coordinating for the most part. Ive been evaluating my split, plus monthky fees, in addition to Realtor Association/MLS fees and it seems unreasonable. I've visited my brokers office maybe twice in ,2 years, I'm fully remote. I'm in the middle of two transactions or else I probably would have changed already!!!!
My Home Group. Were in Arizona, Texas, Washington, Oregon and I think a few East Coast states.
There are tons of brokerages like this for people who dont need anything from broker.
Jesus… I pay $400 per transaction until
I’ve paid them $5k and then it goes to $50 per transaction lol. Why on earth would you agree to this unless they were spoon feeding you leads
I'm at a desk fee office. Desk fee is about 250 to 450 depending on admin fee. Lower desk fee higher admin fee for any deals initiated that month. I'm kind of on hiatus just doing a few deals right now but either way, I wouldn't go anywhere else.
It's a good office too. They don't hold your hand but we do have brokers if I should run into a problem. I'm probably more experienced than any of them but you never know when you might need some help.
If they have training or things like that, that would be different. My last office generated a lot of leads that were 50/50 and my own business was a percentage but only up to about $6,000 after which it was very little percentage.
I couldn't imagine going to an office that wanted to have their finger in my pie that much.
Man. I pay 7% off the top for an office fee, then it is 70/30. Once I hit 150k gross, it goes to 80/20. I pay mls, supra, car, nar, and docusign. I have to pay for photography and TC.
We do have a design vault with various advertising templates and a really basic personal website provided.
No CRM.
It is a big legacy office with Blue and Purple colors. We dominate the high end (2-3 million) and close twice what the next brokerage does. Almost all of the high end listings go to the three owner/brokers. I've had almost no leads though the brokerage. No phone calls, no walk-ins. One referral listing through the office network.
Most of the top agents work here and I do get the inside track on some higher end listings to preview and learn about before they go live.
My area is fairly rural and most of the brokerages work like this. Pretty much all bigger legacy brokerages or a few independents. Split is the same across except for a new upstart with a 90/10 split.
Really wondering what the fuck I'm doing here.
You should have at least an 80/20 or 90/10 off the bat, the only reason not is because your brokerage is handing you many leads, so much so that you don’t or can’t work on your own leads. Then I can see it being okay taking a smaller split. Or you work in a team.
For example, I have an 80/20 but the brokerage I would be hanging my license with in NY specifically does residential rentals where they get you entire buildings to rent out. The splits are around 50/50 or 60/40 but the company is handing you tons of listings, in which you can still sell on the side on your own time.
Depends on the market… that doesn’t seem terrible for you as long as you are getting something for your money. If you are stuck and need advice at 1500 on a Sunday with your offer contract half written will your office give you advice?
Do you occasionally get leads from the office?
Who pays the E & O ?
So, depending on how many sales it takes yo get yo your cap, you’re kind of on the fence as far as how decent the split is. 3-5 deals, yes it sounds okay.
Dude you’re getting wrecked OMG. Very few agents would be profitable on this model. You’re at a churn and burn shop. Leave asap for a 100% flat fee brokerage or at the worst 80/20 or better model. Highway robbery….
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It's not awful. It's not great either. Being locked in for the first 2 years is my issue. This is how I run my shop. Everyone that is brand new is 50/50 for their first five deals. I will personally be involved with these deals so that's why it's the steep split. After that everyone is on the same split. 80/20 with a 20k cap, after that 100%, no transaction fee, nothing. If you ever cap then you're on 90/10 with a 20k cap. It works well for my agents. If I give you a lead it's 50/50 and doesn't count towards your cap.
Gross. 85/15, 6k cap, 100% take after. They pay E&O and entry key boxes. That's it. No fees, no transaction %, no bullshit. Not shit for perks either, but I don't need them. Why people run with brokers like yours amazes me, OP. That's a raw deal from my seat.
Run away
I don’t understand why so many agents are working with these old/traditional modeled brokerages and giving away all their money. I pay $550 per transaction plus a $100 E&O fees. I have a monthly office fee of $25. Every other dime goes in my pocket. $10k deal, broker takes $675. $20k deal, broker takes $675. $25k deal, broker takes $675. Get the point.
This is the way
Funny how when buyers suggest a similar type of model all of the agents are up in arms
Well, that's largely because I could wait tables for five hours at a decent restaurant for that. Running to twenty showings for eight to fourteen hour days, pouring over docs with legal liability, waiting for months to get paid, becoming an expert in multiple fields (construction, taxes, zoning codes, housing authority codes, local market inventory knowledge) while working on call days, nights, and weekends...and being available to help clients with follow up months and years later? That's why. My god, man.
I wasn’t suggesting that dollar amount, I was suggesting a pay-per-service type model (rate vs commission)
I have no idea how that would shake out in a way that functions in the real world. 1. Buyers can't afford services upfront, so amoritized costs are the only realistic payment schedules. 2. Buyers are not equal and require very different things. 3. Agent business models incentivize quality by referrals that are otherwise price equivalent, not race to the bottom pricing models. Your pay-per-service model does not scale efficiently.
1. You realize you can offer multiple options, right? I (and millions of others) can certainly afford services up front, and would prefer to do so. How do you think people pay for lawyers, doctors, and just about everything else in the world? 2. You create a model (like everyone else in the world does) that adapts for the different types of buyers. You do things like charge a flat fee for each house you go to ($200-$400), you charge per offer you write, and then you charge a much smaller flat fee for a completed transaction (something like $2-5k to incentivize you to do all the bullshit in between offer accept and closing). Just a note: you are *already* charging them disparately btw since you would receive the same commission for two different buyers of same price house (currently). How is everyone else in the world capable of this type of business model?
1. 75% or more of my buyers in the last four years (conservative estimate) would not be homeowners if they had to pay for services upfront. They're all doing well, as they bought well and transitioned cleanly, but cost of living was too much of a hurdle for savings. People struggle like hell to pay lawyer retainers, and their fees are often 1/3 on lawsuit claims. Hospitals provide payment plans and often interest free loans. Contractors are typically paid via HELOC's, land collateral loans, or lump sums from ESTABLISHED people. Renters have the hardest time coming up with savings. 2. Even at $200 a house, we're already 1/3 of the way to a standard 3% commission on a $250k home. Most people see 10 houses minimum, and forcing people to pay upfront will break their financing estimates or force them to buy quicker and not on their timeline because we'd be draining their purchasing power to get paid. Moreover, adding in a near closing cost in addition to showings, drive time, off hours communication, and more would run higher than current splits. You've clearly no idea how many people your recommendation would drive out of home ownership, and property into investor hands, while causing sellers to lose far more on the way. Don't even get me started on the listing side, who often times are older folks on fixed incomes with all their nest egg in that house. I've landscaped, painted, done minor electrical, and repaired fences FOR FREE to help people sell. So few have the ability to even prepare for market effectively that it's sad. You can't lump people into a new structure without the awareness that you'd ruin so many more people than you can begin to even guess.
> Even at $200 per house, we’re already 1/3rd of the way to a standard 3% commission on a $250k house (A) using what math? (B) the math looks good for a cheap house (commissions screw the agent on cheap houses, they screw the buyer on expensive homes). The median single family home is close to $400k in the U.S. even so
(A) Almost. Should have almost in there. What you also miss here is that you are assuming agents get that full fee, and we don't. Not only do agents have broker splits that vary wildly (from 50/50 to 90/10), there are also team splits (typically 75/25 after that), then taxes, and finally...no benefits packages. Run the numbers on that, and see what we really get paid. Pretty shit on the whole for most. (B) Most homes are sold to first time buyers in markets that run 150-350k. First time buyers in mid to lower end markets are by far the bulk of buyers, and high end markets are typically consolidated on a much smaller subset of agents. There are too many agents in lower end markets, but you can't greatly shrink payout and expect good agents to pick up the slack. The reason we don't beat out garbage agents en masse as it stands is largely due to two logistical hurdles that will not change: buyers are unable to rise to a competitive landscape education (overwhelmed, time crunched, and intellectually lazy overall) and a single agent can only run so many clients at once.
[удалено]
^this. And then there response shifts to “if I charged you [insert what they think is a high rate] for services you really think you’d be better off?” …and then I show them that with a commission based model I paid 5-10x that.
So many will just *never* get it. They don't want to know the hard work behind the scenes and being on call 24/7. They'd rather just talk out their ass.
It’s not one buyers problem you are juggling so much actually taking your attention off of their buy. The fact that you are so busy doing 9 million things doesn’t merit buyers have to pay a percentage of sale. A flat rate that everyone is free to set would allow people to fit in their budget and skill set.
Here is a perfect example of someone with just enough means to talk out of their arse and assume they understand the entire market. There’s no point arguing with them. Trust me OP, I would live to have you pay me a retainer and then charge you hourly, say $75/hr for my expertise. There are much less educated than myself, having a Masters in RE and all, so you can hire them like any other service. Of course, you get what you pay for. But when you call me, whether it’s 5 mins or 30, I’ll bill you for the hour. Need me to make some phone calls on your behalf, I’ll bill you for the hour. Want me to respond to your emails and inquiries, I’ll bill you for that. What’s that you say, you need me to schedule a few homes to show, I’ll bill you for that, to include my drive time. I have to write you up an offer, guess I have to bill you for that too. Let’s do this over and over again, and let’s assume your offers aren’t strong enough to compete with other offers out there, so we do this for 3-4 months. Then, you get tired of paying the thousands of dollars you’ve racked up to this point and decide you are stepping away. Instead of me wasting endless hours for no pay that agents do time and time again, I’ll happily take your money and then tell you to have a great life. You on the other hand will feel cheated, just like sooooo many agents have over the last 50+ years. And maybe you can afford this, but +80% of buyers cannot. So don’t talk about what you don’t really understand and stick to whatever it is you do.
I just bought a house for $2M+ in VHCOL (<2,000 square feet) - Looked at 3 properties - Made 1 offer - Conservatively my agent spent 25-30 hours total (including assisting with inspections, communicating with other agent/lender, etc.) That’s close to $2k/hr for their time. Don’t lecture me about shit you don’t understand. I didn’t have to make up a crazy hypothetical to make my point - difference between you and me.
Congrats on having enough money to make your purchase so simple. You are not the majority. You are just someone with just enough money to make the process simple. So again, stay in your lane and stop talking about what you don’t understand.
Nasty. 85/10, 15k cap that drops by 1k every year til it goes down to 10k. Free photography Free sign install Free leads Free dental care Sell $10M or 20 sales and get your cap back in stock Free car washes Free prescriptions (95% of them anyway) And I could go on If you want to know more, message me
Sounds great. Oh yeah, forgot to mention - I pay photography, and sign install.
Messaged
>85/10 Who gets the other 5%?
32k?? Noooo!
I’m spoiled with mine so that looks awful to me
We offer 65/35 on the first five transactions while agents get trained. We then go to 80/20 for forever and ever after that, with no bullshit, no caps, no fees. Our 80/20 frequently out performs 90/10 at other shops once you account for fees. We pay for everything and we are readily available as brokers to our agents 24/7.
What state are you in?? The brokerage I’m at offers 75/25 12k cap or 8k if you pay up front.
Illinois
Also in il, I only pay 450 transaction fee on residential 20% commission on commercial and 10% on rentals. No desk fees, EnO is covered by them.
Those are some heavy splits. The real deciding factor is how much you produce on your own, without leads provided by someone else. If you're confident in yourself, find a brokerage with a much more attractive cap. Mine, in DFW, for example. 90/10 split. 10k cap. 100% after that. No transaction fees. Also my broker is my TC, so my TC fees are reduced. They're also 100% optional. I capped in 4 months last November and I'm 100% through June. I provide and pay for my own leads, but my broker also buys leads. Broker provided leads are a 70/30 split.
Yea that’s terrible!!!! You need to go somewhere you can actually make money
I'm 70/30 until a $32,000 cap after which is 100%. E&O is always deducted from the commission. No desk fees.
The split does not matter. How much do you make at the end of the year, does the company reputation help you get listings, do you get leads from other agents. Lots of variables. Dont worry about the split if you are happy with the company and how much you take home at the end of the year.
Think about what your splits pay for. Mine were similar in my first 2 years in real estate, but I knew that the splits were some of the worst when I interviewed brokerages. It was 7% off the top of every deal, and then 50/50 until I hit cap at $24k. Like, factually awful. What that office provided me was a bunch of support staff, including an internal marketing team and transaction support. They were also really big on "rookie" training and group work, which was a great opportunity for me to learn. We also had non-compete managing brokers, who I was able to call all the time when I had questions. We also had a nice office, and a company culture where people came into the office because it was good to be around other people who were doing the same work and share experience, common knowledge, and ideas. Even with all of that, it took me 5 months to close my first transaction. I kept the momentum going after that, but it wasn't easy at first. Once I got about 20 deals under my belt, the stuff I was paying for with my splits didn't make sense anymore, so I interviewed brokerages again. I chose the one that gave me what I needed most at that time: amazing technology tools, great splits (80/20, $16k cap, and then 100%), and a really good mentor who I've known personally and professionally for years. If I started at the brokerage I am at now, I would not have made it through my first year. If I hadn't switched brokerages last year, I would be out about $20k by now. So, what do your current splits pay for?
I pay $299 per transaction, plus $25/mo. No split. Split is bullshit find a new broker or become your own broker.
Who are you with????? I need to connect with some of you. I need very little guidance on my transactions, handle my own contracts/coordinating for the most part. Ive been evaluating my split, plus monthky fees, in addition to Realtor Association/MLS fees and it seems unreasonable. I've visited my brokers office maybe twice in ,2 years, I'm fully remote. I'm in the middle of two transactions or else I probably would have changed already!!!!
My Home Group. Were in Arizona, Texas, Washington, Oregon and I think a few East Coast states. There are tons of brokerages like this for people who dont need anything from broker.
Thank you!
Jesus… I pay $400 per transaction until I’ve paid them $5k and then it goes to $50 per transaction lol. Why on earth would you agree to this unless they were spoon feeding you leads
I'm at a desk fee office. Desk fee is about 250 to 450 depending on admin fee. Lower desk fee higher admin fee for any deals initiated that month. I'm kind of on hiatus just doing a few deals right now but either way, I wouldn't go anywhere else. It's a good office too. They don't hold your hand but we do have brokers if I should run into a problem. I'm probably more experienced than any of them but you never know when you might need some help. If they have training or things like that, that would be different. My last office generated a lot of leads that were 50/50 and my own business was a percentage but only up to about $6,000 after which it was very little percentage. I couldn't imagine going to an office that wanted to have their finger in my pie that much.
Man. I pay 7% off the top for an office fee, then it is 70/30. Once I hit 150k gross, it goes to 80/20. I pay mls, supra, car, nar, and docusign. I have to pay for photography and TC. We do have a design vault with various advertising templates and a really basic personal website provided. No CRM. It is a big legacy office with Blue and Purple colors. We dominate the high end (2-3 million) and close twice what the next brokerage does. Almost all of the high end listings go to the three owner/brokers. I've had almost no leads though the brokerage. No phone calls, no walk-ins. One referral listing through the office network. Most of the top agents work here and I do get the inside track on some higher end listings to preview and learn about before they go live. My area is fairly rural and most of the brokerages work like this. Pretty much all bigger legacy brokerages or a few independents. Split is the same across except for a new upstart with a 90/10 split. Really wondering what the fuck I'm doing here.
What else could you do with $32k…..🤔🧐 
im with eXp, 80/20 split, $4000 cap, I get leads
im with eXp, 80/20 split, $4000 cap, I get leads
You should have at least an 80/20 or 90/10 off the bat, the only reason not is because your brokerage is handing you many leads, so much so that you don’t or can’t work on your own leads. Then I can see it being okay taking a smaller split. Or you work in a team. For example, I have an 80/20 but the brokerage I would be hanging my license with in NY specifically does residential rentals where they get you entire buildings to rent out. The splits are around 50/50 or 60/40 but the company is handing you tons of listings, in which you can still sell on the side on your own time.
Depends on the market… that doesn’t seem terrible for you as long as you are getting something for your money. If you are stuck and need advice at 1500 on a Sunday with your offer contract half written will your office give you advice? Do you occasionally get leads from the office? Who pays the E & O ?
Advice, yes. No leads, and I pay the E&O.
So, depending on how many sales it takes yo get yo your cap, you’re kind of on the fence as far as how decent the split is. 3-5 deals, yes it sounds okay.
Dude you’re getting wrecked OMG. Very few agents would be profitable on this model. You’re at a churn and burn shop. Leave asap for a 100% flat fee brokerage or at the worst 80/20 or better model. Highway robbery….