How Does An Agent Survive?

Perhaps you are just graduating real estate school and are shopping for a place to hang your license.  Picking a company can be challenging.   Real estate agents often talk in an entirely different lingo and the terms can be thrown around to the point where it can be overwhelming.  When you are interviewing Brokers at different company’s,  a percentage is often put out there…We’ll give you a 70/30,  or an 80/20,  or maybe even a 60/40.  But what does that mean to you?  This ratio is in regards to the split you will have with your new company.

For example,  say you are helping a Buyer purchase a home for $100,000.  You may see on the MLS (Multiple Listing Service) a BAC of 3%.  BAC is the Buyer Agent Commission.  This is the amount the Seller is going to pay your Broker – and in this case it would be $3000.  After closing (the deal has been recorded and is final), the Sellers title company will send your broker a check.  Your broker will have a total of $3000 (a portion of that money may have actually been earnest money your broker was holding-but that’s another story).

If you have a 60/40 split your broker will keep $1200 and you would get a check for $1800.

If you have a 70/30 split your broker will keep  $900 and you would get a check for $2100.

In addition your broker may charge you a transaction fee, a desk fees, training fees, mentor fees, secretary fee, bookkeeping fees etc. etc…Don’t forget you also have your own out of pocket expenses that you spent to make the deal happen (printing, marketing ,equipment, open houses, postage, business cards)

At Upper Room Real Estate, we offer a 90/10 split!!! That means you get to keep more of the money that you worked so hard to make.

If you have a 90/10 you would receive a check for  $2700.  

One of the big reasons so many agents cannot survive as a Realtor is due to the arm and leg so many big companies charge.  Don’t let this happen to you.  Start off on the right foot.  The more money you get to keep means your bills get paid and you have money to reinvest in making your real estate career successful.