eXp Realty is a unique brokerage, which means it can’t run the same as every other one out there. At any realty brokerage, there will be fees to pay for office space, training, advertising, software, and other similar bonuses. These are the things you might not initially think about that will help you succeed when you get to selling. While eXp Realty has fees similar to the rest, as a fully online brokerage, many are a little different, and some are not there at all.
Here’s a quick breakdown of the eXp Realty pay structure and what fees you’ll pay in a typical transaction (assuming you have not capped and are not in the Mentor/Mentee program):
- Total Gross Commission: $10,000
- eXp Broker Split: $2,000
- Commission to agent: $8,000
- Broker review fee: $25
- Risk management fee: $40
- Total: $8,000 – $65 = $7,935
- Factor in the monthly fee of $85 and you’ve earned $7,850 for the month if no other transactions are made.
It might seem confusing now, but by the end of this article, you’ll know everything you could desire about the fees of eXp, both the obvious and the not-so-obvious. It’s important to note that these fees reflect US dollars and the US market, and it is possible that things could change for everyone in years to come. If you’re tuning in from another country or need clarification, get in touch with me and I can provide you with further information relative to your homeplace.
If you prefer to watch a video, check out this nifty presentation on ALL the eXp Realty fees you’ll ever need to understand.
Startup Fee
As with many online programs and businesses, eXp does have an initial, one-time startup fee of $149. This also includes your first month of using the cloud brokerage, which is $85 per month after you start.
Cloud Brokerage Fee
Every month, you’ll pay a fee of $85 to eXp. This breaks down into $50 for the technology you’ll be provided with (e.g. kvCORE CRM) and $35 for the educational resources every eXp agent can access (ex: 60+ LIVE Hours per week). $85 might seem like a lot at first glance, but that monthly payment provides you with access to a huge variety of online resources.
- At eXp, agents get access to kvCORE, the top CRM management platform in real estate. kvCORE’s cutting edge technology and in-depth analytics reports will help you generate leads and build relationships with clients. The retail price for kvCORE alone runs in the THOUSANDS per year, but you get this included with your fees at eXp. It’s a HUGE benefit.
- You’ll have access to Regus work locations around the world. If you prefer to work in an office rather than at home, you can find a Regus workspace wherever you are and set up there for FREE. (The retail price for Regus is AT LEAST $1,200 per year.)
- eXp also provides agents with access to low-cost healthcare programs, a benefit that most other brokerages don’t provide. (Seriously…which real estate brokerage does that?)
- Finally, with eXp’s platform, you have access to 60 hours a week of live training, plus a space to connect with agents from around the world. That $85 covers priceless benefits to ensure you have the resources and help you need to succeed as a real estate agent.
Commission Fee
Everyone knows that brokerages have commission splits. It’s the one big thing agents look out for when considering a new company. At eXp, the initial commission split is pretty typical at 80/20. 80% of the sale goes to you, 20% goes to the brokerage.
Now, at eXp, this will cap at the fairly low amount of $16,000, which means you have to make approximately $2.66 million in sales and you’ll move on to earning a 100% commission. After that, the only eXp Realty fees you’ll only pay will be a transaction fee ($250), broker review fee ($25), and E&O ($40) costs on further transactions.
Broker Review Fee
Every transaction includes a $25 broker review fee. The broker team in every state (and country) reviews all transactions. This fee is charged per transaction regardless of whether the agent has capped or not. It is the ONLY fee that has no cap or limit. Whether you sell 1 property per year or 1,000, you will still pay the $25 broker review fee.
E&O Risk Management Fee
Per transaction, you’ll pay a $40 fee for E&O (errors & omissions), or risk management insurance. E&O insurance protects against lawsuits filed against you and/or your brokerage for misconduct or errors. Often, these are lawsuits claiming that there was something wrong with the property when it was sold or similar allegations. It’s essential for a brokerage to have insurance to protect against these lawsuits and related court fees. This $40 fee for you only lasts until you cap at a total of $500 for the year.
Transaction Fee
After you cap in sales (sell $2.66 million in sales volume), you pay only $250 per transaction. However, your transaction fee doesn’t always remain this high. Once you have paid out $5,000 in transaction fees, (or made about 20 more transactions), this cost is reduced to $75 per transaction.
So, let’s review this again with an example.
- Start with the gross commission of $10,000.
- Subtract the eXp cut of $250.
- Take the commission to the agent of $9,750 and subtract your broker review fee ($25), E&O fee ($40), and monthly brokerage fee ($85).
- If you are not operating under the commission split, you’ll end up with a commission of $9,600 ($9,775 if you’ve capped your transaction fee).
Bonus: ICON Agent Equity (This ONLY happens at eXp Realty)
When you reach ICON Agent status by meeting specific transactional and cultural goals, eXp will issue you the commission you paid into the brokerage ($16,000) in the form of equity. That is a huge bonus that no other real estate brokerage offers. You get all the benefits of owning part of a brokerage simply by doing your work well. ICON is a unique and powerful program that encourages and supports all the hard work and cultural engagement that you’ve already been involved in, but with the added benefits you deserve!
Mentor/Mentee Program at eXp
There’s one big thing that new agents need to know when coming into eXp for the first time. If you’re a brand new or inactive agent with less than three sales in the last 12 months, you will be enrolled in the eXpand Mentoring Program. If you are enrolled in this program, your FIRST THREE transactions will be made on a 60/40 commission split. While this is easy to overcome if you work hard, it does come as a surprise to many eXp agents, so I wanted to warn you. After the first three transactions, you go to the standard 80/20 split.
Thankfully, eXp is pretty transparent about where that extra money is used. The additional 20% for the first three transactions is used to fund the eXp University and your mentor. 10% goes to the mentor and 10% to the classes provided on eXp’s platforms for agent training. Again, this is only taken from your first three transactions, so you should definitely use it as an incentive to work hard and get your business going.
- Total Gross Commission: $10,000
- eXp Broker Split: $4,000
- Commission to agent: $6,000
- Broker review fee: $25
- Risk management fee: $40
- Total: $6,000 – $65 = $5,935
- Factor in the monthly fee of $85 and you’ve earned $5,850 for the month if no other transactions are made.
eXp Bonus Perks
Just like with any job, being a real estate agent comes with some perks. At eXp, you have tons of flexibility in who you choose as your clients and how you run your business. There are limited requirements, allowing you to run your transactions in the way you think best. There are two huge perks with eXp that you’ll definitely want to know about as you’re considering the overall fees.
1. Personal Transactions
Every year, agents get three personal transactions. If you want to buy a home for your personal use without paying out commission to eXp, you can do that three times, paying only the transaction ($250), broker review ($25), and E&O fees ($40), which comes to $315. That’s a very small fee for a transaction that can set you up for life!
2. Cutting Deals
We all know people who need help purchasing a house, whether it’s because it’s their first time or they’re struggling with making ends meet. At eXp, you can charge whatever you want to sell a home. However, the minimum that needs to be paid to eXp is $500. While you as a real estate agent can run your business however you’d like, as a part of eXp, you do need to ensure that the $500 minimum is covered.
SAMPLE Independent Contractor Agreement
I believe in transparency, and I know you do too. We all hate going into something afraid that some surprise is going to hit us and set our plans all akilter. To help you avoid this eventuality, I’ve included a sample eXp Independent Contractor Agreement (ICA) here so you can take a good look at all the details of eXp Realty fees. You’ll see the fees, the allowances for you as an independent contractor (NOT an employee), insurance information/options, and more. So yes, I HIGHLY encourage you to do your due diligence.
If you have further questions or want to get involved with eXp, you can schedule a call with me to find out everything you need to know. And if you want to partner with me, I can help you get your lead generation done for free to really get your business soaring.