All across the board, real estate brokerages are setting commission splits to encourage agents to apply. While average real estate commission splits are around 50/50, many brokerages have gone above and beyond this to offer agents more money and more opportunity for success.
In some of the biggest and most popular brokerages out there, the commission split differs quite a bit. It’s important to know the commission split for any real estate brokerage you want to join, so I’ve done the research to show you the real estate commission splits for the best brokerages out there.
Now, be warned that this research was done based on publicly available information. I have not been a part of all of the brokerages below. Given that most brokerages operate under a franchise model, the splits will vary from time to time.
Coldwell Banker
Coldwell Banker is one of the oldest and most trusted real estate brokerages in the United States. Many agents join for the stability that comes with the Coldwell Banker name, so they might not be joining for the commission split.
While the Coldwell Banker real estate commission splits tend to vary by office, the most common split is 55/45 or 60/40. This means that agents only get to take home about 55% to 60% of each transaction. This split is pretty low compared to most other major brokerages, and a lot of agents are okay with that because of the technology Coldwell Banker provides. Coldwell Banker also has desk fees, though the amount you have to pay each month varies by office.
If you’re going to use all the training and tech that Coldwell Banker offers agents in exchange for the commission split, this split might be okay for you. Otherwise, you may want to look elsewhere.
Keller Williams
Keller Williams is a worldwide name, one of the biggest in the world. Many agents at Keller Williams say they make more money than at other brokerages because of the generous commission split and the cap system.
At Keller Williams, the commission split is 70/30. The agent takes 70% of each transaction and gives 30% to the brokerage. However, because Keller Williams operates a franchise model, agents have to give another 6% as part of the franchise fee. Keller Williams also charges some desk fees, though the amounts vary considerably from around $25 a month to $175 a month depending on the region and what technology you use.
The reason agents are still able to make quite a bit is that there is a cap. Each office sets a different cap for the 70/30 split as well, so that agents can earn 100% of their commission once they reach the cap. Also, Keller Williams operates a “Profit Share” program with agents that help grow the brokerage.
If agents work hard to sell a lot of homes, they will easily be able to meet the caps and get higher commission splits all around. It’s not a bad deal for those who want to work in such a huge franchise!
eXp Realty
eXp Realty is the biggest fully online brokerage in the United States. Agents love working with eXp because it offers them maximum flexibility and multiple revenue stream opportunities in addition to commission.
The commission split at eXp Realty is 80/20. Agents get to take home 80% of every transaction, but the split also caps at $16,000. So, once an agent has paid $16,000 to eXp, they get to keep 100% of every commission. However, there are some “desk fees,” including $85 per month for the online technology resources, $25 per transaction as a broker review fee, $40 per transaction for E&O insurance (capped at $500).
eXp is popular among agents because it has many other revenue streams, including revenue share, affiliate partnerships, and stock shares in EXPI World Holdings. If you’re okay with an online platform, this brokerage is one of the best ways to build wealth.
Berkshire Hathaway
Berkshire Hathaway is a largely luxury real estate brokerage. The agents who work there tend to sell higher-value homes and thus make a bit more money per transaction because of the average sales prices.
The commission split at Berkshire Hathaway appears to vary by agent. According to some reports, the commission split for new agents starts at 60/40. However, it appears when agents get more sales, they can negotiate for a higher commission split, up to 80/20 or 90/10. Berkshire Hathway is a great place to get into luxury real estate, but may not be the best place to make a lot of money from commissions when you’re starting out.
Century 21
Century 21 is a well-known brokerage. People buying tend to give agents from Century 21 a lot of trust due to the reputation of the brokerage. However, agents from Century 21 don’t get a fantastic commission split–it usually starts out at about 50/50.
Century 21 agents do get to skip any desk fees, which can end up saving a lot of money. However, in addition to the 50% split on a commission, another 8% has to be paid as a franchise fee. This fee is sometimes split between the agent and broker but might be paid by the agent in its entirety.
While agents may get more clients with the Century 21 name, their commission split won’t be as great. You’ll need to evaluate carefully how much you’ll save in desk fees and make up for in brand power if you want to join with the low commission split.
Re/Max
Re/Max is another big brand name with major clout to offer real estate agents. This brokerage provides a lot of training and value to clients, and it has a variety of commission split opportunities. Desk fees are pretty high at Re/Max, often ranging from $300 up to nearer $1,000. This is fine for experienced agents, but new agents may suffer.
New agents typically start at a 60/40 commission split until they cap at $23,000. After that, they will get to move to a 95/5 commission split. When agents get higher up and start growing in their business, they might end up starting the year with a 70/30 or 80/20 commission split until that $23,000 instead.
Re/Max is a good brand with pretty extensive training and support. And with the opportunity to increase commission splits and make 95% of commissions after a cap, it’s not bad money either.
Compass
Compass Real Estate is a luxurious, modern brokerage with lots of agent benefits like an exclusive concierge service (to help with staging, repair, etc.) and advanced tools. Agents with Compass will get a luxury feel to all their work. It’s not clear if Compass charges any desk fees–these may all be covered by the commission split, but you should check with your local office.
The commission split at Compass varies by agent. Each agent gets to negotiate with the brokerage for the commission split they think they deserve, so more experienced and successful agents often make more. By some estimates, the average commission split at Compass is around 80%, though it’s pretty hard to find.
For agents that like a lot of flexibility in the luxury sphere, Compass is probably a good option. However, their commission split really isn’t clear, so you’ll want to make sure you can negotiate for what you need.
Sotheby’s
Sotheby’s is an established, well-known real estate brokerage. With offices around the world, its financial information tends to differ by office. So do its benefits–Sotheby’s does not appear to have a uniform training program, so it varies by office.
The commission split at Sotheby’s rests around 70/30 for most agents, with the chance to increase. This does cap, though there is no exact cap amount. Depending on the office, it usually falls between $18,000 and $30,000. It appears that agents still have to pay some percentage of a fee with every transaction even after capping, though how much is not clear.
There is a bit of an incentive for agents who want to work their way up the ladder to a higher split, but that depends on how hard you want to work. No matter what, the split won’t be reduced, so you’re likely to get 70/30 or higher for as long as you work with Sotheby’s. If that’s good enough for you, you may want to consider the established real estate brokerage.
Brokerage Commission Splits
As you can see, real estate commission splits, fees, and benefits vary greatly by brokerage. It’s important that you look closely at the benefits you want most in a brokerage and determine how much you’ll be able to (and need to) sell to make the money you want.
If you’re interested in learning more about eXp Realty, reach out to me and I can give you more information on their fee structure.