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Commission split topic receives record responses

By
Real Estate Agent with Exit Island & Beach Realty

Well I am new to ActiveRain so I don't know if it Sharon Lewis' featured blog broke any records but what I do know is that it opened a can of worms.

I believe that in this profession we have the right to negotiate the best deal and terms not only for our clients but for ourselves as well. I was shocked when I read that agents feel as if they paid their broker. In Florida an agent can only be paid by a broker. "The Deal" belongs to the broker and as an agent of the broker we are allowed to work the deal and be paid "BY THE BROKER" only. So when you agree to hang your license with a broker, you already know what the split is and what you get for that split. If you are unhappy with it, don't hang your license there.

In the case of Sharon Lewis' friend, he was a new agent and didn't know better. I would have thought he would have called upon his friend who is an experienced agent and ask for her advice before agreeing to work under that broker.

When it comes down to it, we all need to do what is best for us. There is more to it than just the split. I talked with agents that make 100% commission. Sounds Great, right? Well not for the new agent because there is absolutely no support at all. The agent pays for absolutely everything including a $1,000/mo desk rental and a $250 transaction fee. You better be sure that you are doing the business to support that.

I am sure I didn't get the best deal for me when I first started. But as I said there is always more to the story. My broker is my friend and actually talked me into the profession. She pays for a lot of things but doesn't offer much more. It lacked in training so I decided to sign up for every seminar, webinar and training class I could. Initially we worked from home. As short sales became more the norm and banks using out of town attorneys for closings we needed somewhere for closings and to meet people. She spent a lot of money opening a new office. Does the office make us more money or is it just an added convenience? I believe both!

The long and short of it is that we all have the right to make our own choices. Customers have many choices to choose from when deciding on what agent to work with and so do you!

Make it a positive day and go sell a house!  

Justin Galloway
EXIT - Cartersville, GA

Good info.. What is the AVG split anyways?

Aug 09, 2010 03:40 AM
Glenn Roberts
Retired - Seattle, WA

Welcome to the industry and to Active Rain, Micheal. As you grow in the business you will find the right split and the right place to be. Best of luck. This is the place to be online.

Aug 09, 2010 03:41 AM
Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

Hi Michael,

I see you have your ABR designation. That is a great designation. I am assuming you are not a new agent and are not looking to move as the above comments infer.

I agree with your comments.  In particular... "The agent pays for absolutely everything including a $1,000/mo desk rental and a $250 transaction fee. You better be sure that you are doing the business to support that."

My feeling on that is if an agent can consistently gross over $40,000 in transaction side commissions per year, he/she should look at joining this type of company.  Now, if you reached that because of one large transaction...probably not.  But if you are selling $200K homes, you are going to have to do at least 7 transaction sides to get to the $40K level. You do not need to be hand held by the commission split Broker if you have the moxy to do 7 deals or more a year. Besides...the 100% Broker still has the same responsibilities.

Great Post!!

Aug 09, 2010 04:05 AM
Richard Weeks
Dallas, TX
REALTORĀ®, Broker

Michael,

There are hundreds of various comp plans.  If an agent is not happy with their choice it is very easy to go some other broker.

Aug 09, 2010 06:05 AM