Real Estate

Everything You Need to Know About Commission Splits

Written by MoveEasy

Beginning a career as a real estate agent? Or thinking about it? Here’s what you need to know about your paycheck.

In all likelihood it will be your real estate broker who compensates you. The amount you are compensated after a sale is based on your broker’s commission split policy between themselves and their real estate agents. You should know about this split before you begin working—and it should be one of the first questions you ask when you interview.

The split is usually reflective of the amount of services a brokerage provides its real estate agents to assist them in selling properties. Usually a commission split will be 50/50, but this isn’t by any means across the board because each brokerage is different.

We will use the 50/50 commission split as an example, but be sure to keep in mind this could vary. Let’s pretend you’ve just sold a home to imagine what your takeaway will pan out to be. If $12,000 is the gross commission amount after everything is settled, it will be split equally (50% each) between yourself (the agent) and your broker.

If a real estate broker offers its agents services to increase their production (i.e. lead services), then the commission split will usually level out to a higher percentage in favor of your broker, i.e. a 60/40 split. This would end up, using the example above, being $4,800 in your pocket and $7,200 in your broker’s.

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