As a real estate agent or commission-earning broker, your bottom line really is the bottom line. Unlike most other industries, your compensation is a lot more complex than an hourly or annual pay rate. Jumping into the business of home buying and selling, you chose a career where your earnings depend on a complex, irregular and widely-varying calculation—from the technology fees you pay to how you split commissions with a brokerage, team leader and the agent on the other side of a deal.
Understanding how you are compensated—and why—is vastly more important in real estate due to the industry’s variability and independence. It has also never been more urgent, as legal and regulatory forces scrutinize the fundamental structure of real estate transactions. If you want to grow in this business, knowing what type of brokerage offers the best splits or if you’re paying more fees than the average agent with your experience can make the difference between surviving, thriving or resorting to a nine-to-five gig.
RISMedia’s second annual Contract & Commission Study pulls back the veil on real estate compensation, allowing you to best position yourself to maximize your earnings.
Key takeaways include:
- Which brokerage model is offering the best splits, and what type of agent is most likely to take home 80% or more
- Who is paying the most in fees, and who saw the biggest increases from last year
- Which regions and demographics are charging the highest commission
- How industry experience and time spent in-office affects your compensation
Information is currency—don’t leave money on the table.