United Real Estate has announced a major milestone: Since its founding, United and its affiliated offices have cumulatively paid $1 billion more in commission earnings to its agents than what those agents would have been paid had they closed transactions at a typical commission-split brokerage.
According to a release, United calculates that its compensation model returns 21%-45% more to its agents from real estate transactions. This is made possible by its model that does not charge agents a commission, but rather takes a flat fee from each transaction, paying agents almost all of the commission earned at closing—96% to be exact, the company stated.
At its core, United Real Estate says its is built on a simple mission: To improve the financial trajectories of agents’ careers and lives.
“This isn’t theoretical value. It is not a hollow promise of downstream riches that only inure to a few people at the top of the pyramid or worthless restricted stock. It is more cash in our agents’ pockets now,” says United Real Estate Group CEO Dan Duffy.
“This is real money, earned through hard work and paid directly to agents at closing—strengthening families, accelerating long-term wealth creation and supporting retirement security. There is not a more direct, efficient or equitable way to invest in agents and communities than paying agents more of what they earn. Additionally, our agents are best positioned to be the most cost-effective service provider for the buying and selling public. That’s the United difference—and it’s measurable,” added Duffy.
United states it simply redirects value where it belongs: To the agents who earn it. The firm’s model eliminates financial and operational inefficiencies that bog down a brokerage’s ability to maximize agents’ retained earnings and compete for clients selling and buying residential real estate.
Agents working at typical 70/30 or 80/20 commission-split brokerages earn 26%-46% less than peers at flat-fee brokerages when performing the same work at the same production levels.
The economics of United’s flat-fee model is simple, yet elegant, the company states. Economic research consistently shows that earned income paid directly to workers generates additional economic activity in their communities. Using conservative income‑multiplier assumptions commonly applied by economists and federal agencies, $1 billion in direct payouts can reasonably support approximately $2.0 billion in total local economic activity.
These are dollars the company notes:
- Pay mortgages
- Fund college education
- Support local businesses
- Create jobs
- Build retirement portfolios
- Support the community
- Expand the tax base
For more information, visit JoinUnitedRealEstate.com.
