What is eXp Realty’s Commission Split?

Before joining any brokerage, you need to know all about the financial structure at that brokerage, including the commission split and other fees you may have to pay. Of course, it’s no different if you’re wanting to join eXp Realty; you’ll have to know all about eXp Realty’s commission split and how it breaks down for your business.

This article will go deep into eXp Realty’s commission split in detail to make sure you understand everything you need to know about how it works and how much money you’ll pay/earn while working at eXp. 

The Traditional eXp Realty Commission Split

The eXp Realty commission split is 80/20. This means that 80% of every commission goes to you, the agent, and 20% of every commission goes to the brokerage. 

The cap at eXp is $16,000. Once you have paid $16,000 in commission split fees into the brokerage, you will cap and receive 100% of your commission for the rest of the year. To reach this cap, you’ll need to make approximately $2.66 million in sales.

In addition to the commission split, it’s important to note that you have a few other fees to pay when working at eXp.

• $85 monthly fee. This fee covers the technology you get to use at eXp, including the CRM kvCORE, access to any REGUS location around the world, 60+ hours of live training per week, and eXp programs like Enterprise, Workplace, and Skyslope.
• $25 broker review fee. This fee is paid with every transaction and covers the cost of the required broker review on each closing.
• $40 risk management fee. This fee pays for Errors and Omissions (E&O) insurance, also called risk management insurance. You pay this with every transaction until you cap at $500 per year. 

Finally, when you cap, you will have to pay a transaction fee of $250 per transaction. This fee also caps, however, once you pay $5,000 transaction fees into the brokerage. After that cap, you only pay $75 per transaction. 

Example (before capping)

Assuming this was the only sale for the month, the net income for the month was $11,935 – $85 (monthly fee) = $11,850

Example (after capping)

Assuming this was the only sale for the month, the net income for the month was $14,685 – $85 (monthly fee) = $14,600

The New Agent Commission Split

If you join eXp as a brand new agent who has not closed at least three real estate transactions in the previous 12 months, you will be required to join the Mentor/Mentee Program at eXp. In this program, your commission split on your first three transactions with eXp will be 60/40. 

The additional 20% that goes to the brokerage for these initial three transactions is used to pay your local Mentor and your fees for eXp University. Yes, as a new agent you receive additional, local support and formation.  

Besides the increase on those initial three transactions, everything else about the new agent commission split is the same. After the first three transactions, you automatically go to an 80/20 split with a cap of $16,000. The fees remain the same:

• $85 monthly technology fee.
• $25 broker review fee per transaction.
• $40 risk management fee per transaction with a cap at $500.

Example (while under Mentor/Mentee program)

Assuming this was the only sale for the month, the net income for the month was $8,935 – $85 (monthly fee) = $8,850.

The Bonus Personal Transactions

In addition to working within the regular commission split at eXp, agents are allowed three personal transactions each year. These transactions are not subject to the commission split. Instead, you’ll only pay the transaction fee, risk management fee, and broker review fee.

These personal transactions must be purchased in your name or have your name on LLC papers, making them ideal for use on your transactions to become a homeowner or investor. Again, your fees here will be:

• $500 transaction fee.
• $25 broker review fee.
• $40 risk management fee.

Example (Personal Transactions)

Assuming this was the only sale for the month, the net income for the month was $14,435 – $85 (monthly fee) = $14,350.

The Question of Discounts

We can’t discuss specific commissions or how much you’ll charge on transactions. However, eXp is pretty hands-off when it comes to the business decisions you make day-to-day. As long as you’re complying with state and national guidelines, you’re free to do what you like.

In most transactions, as long as eXp Realty receives its minimum fees (on a sale or lease), you can charge what you wish or offer discounts on your commissions for particular clients. 

The Overall Commission Split at eXp

So, there you have it. The simple answer to eXp Realty’s commission split is that it’s 80/20. However, eXp is proud to offer many opportunities for agents to earn more and pay less. If you have more questions about how commissions work at eXp, don’t hesitate to reach out to me for specific details.