Real Estate Brokerage Comparison Report

A commission split is the percentage of each transaction paid to the brokerage, such as a 70/30 split where you keep 70 percent. The cap is the maximum dollar amount of commission split you must pay to the broker in a given year, after which you keep 100 percent of your commissions. Once you hit your cap, you only pay minor transaction fees until your anniversary date resets.

No, 100% commission models usually charge high monthly desk fees, transaction fees, and technology fees regardless of whether you close any deals. If you are a low-volume producer, these fixed overhead costs can easily exceed what you would have paid under a traditional split model. High-volume producers benefit the most from 100% commission structures because their transaction volume justifies the flat fees.

Franchise royalty fees are national brand fees, typically ranging from 5% to 8% of the gross commission, charged by major national brokerages. These fees are usually deducted from the gross commission before your local brokerage split is calculated, meaning a nominal 70/30 split actually nets you closer to 64% after franchise fees. Some brokerages cap these franchise fees annually, while others charge them on every single transaction indefinitely.

Yes, managing brokers have the authority to negotiate splits, caps, and sign-on incentives for experienced agents with a proven track record of production. You will need to present your past production reports, a solid business plan, and a clear projection of the volume you expect to bring to their office to leverage a better deal. Newer agents generally have very little negotiating power and must accept the standard entry-level tier.