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Which Real Estate Company Has The Best Commission Split | Top 10 List
There are many real estate companies to choose from. Commissions can vary depending on the listing agent’s commission split with their company, so it can be hard to know who to trust and what company to go with.
Here is our top 10 list of the best real estate companies based on the commission split they offer their agents.
We put together this list based on the reports we receive from our real estate agent members and their personal experiences with each of these companies over the years.
When you’re thinking about who you want to sell your home with, it’s essential to consider all of your options, not just how much they charge but how they charge.
The commission split is a term used to describe how a real estate agent will take a percentage of your home sale price and what that percentage will be.
1) Howard Hanna Real Estate Services
For some agents, commissions are one of those unknown factors that cause apprehension about switching to a new broker.
A salesperson’s earnings are tied directly to their ability to sell homes, so it makes sense that you’d want to ensure your next agency is as interested in your success as you are. For most larger companies like Howard Hanna Real Estate Services, there’s more than one method at play.
Bonuses can include corporate incentive bonuses or designations such as being an Elite agent or Platinum agent.
Overrides are additional fees on top of the sale price that may be negotiated depending on where the property is located. Still, they’re usually added in cases where properties go into a contract without ever being listed publicly and when homes don’t close on time due to financing issues.
- Commissions are typically made up of a base rate plus bonuses and override.
- The base rate is calculated by multiplying the home value by 1%.
2) CA Flat Fee Company
Agents provide all their marketing, lead generation, and follow-up. The upside is that agents have complete control over their business model but can also go broke fast if they are not market savvy.
CA That percentage is then used to determine which agent gets credit for an offer accepted or an agreement signed.
Usually referred to as dual-income share companies, you may find most of these types of firms located in states with few other options available.
In many cases, 50/50 companies provide training and mentoring to help agents make it on their own.
What’s not so great about this structure is that when one agent does well, the entire group benefits, which doesn’t happen when one agency succeeds.
Listings & Closed Sales: More experienced agents who specialize in a particular area will want to consider signing with a brokerage firm with access to listings and sales data within their niche. One listing alone could be worth tens of thousands of dollars to your bottom line!
- Flat Fee Company usually charges a flat rate of 1%-2% and offers little to no support to its agents.
- 50/50 Company: 50/50 companies pay agents half of each deal negotiated with a buyer or seller, generally around 3%-5%.
3) Fordham Company
As a Realtor, you are paid through commissions from closing on each transaction.
The larger your commissions, the more your time can be devoted to managing clients and their properties rather than doing paperwork or other administrative tasks.
While Fordham’s commission split is not the most generous, it may be worth it if they have properties with enough potential to generate high earnings.
For those interested in negotiating a lower price, the seller may offer to increase your share of the profits at closing; however, this might not always work in your favor as there’s no guarantee that the property will sell for more than it would have otherwise.
One thing to remember when choosing between companies is what you’re willing to give up. If you want all of the benefits without risk, choose a company like Fordham Company.
- The Fordham Company offers a 95% commission split.
- This means that 95% of every dollar you receive goes directly to your pocket.
- The remaining 5% is given to the Fordham Company for their efforts in finding buyers and maintaining your property after closing.
4) CHG International
They maintain high-quality online marketing programs and keep up-to-date on new technologies that can make your job more leisurely and cost-effective for consumers.
Suppose you already work for another brokerage that pays you via direct deposit. In that case, CHG allows their agents to continue doing so if they want! We’ve yet to find any other firm that will do that.
Regarding great commissions, CHG International is one of the best in the industry. If you’re interested in becoming an agent with them, contact them today!
There’s no better time than now to take advantage of their perks and enter the lucrative real estate field.
Whether you’re new or just looking for more flexibility with your schedule, CHG is there for you every step.
- With a solid number of real estate agents, CHG International is an easy choice for many consumers.
- And they’re not bad people to work with; they give a generous 50/50 split on home sales with their agents and regularly offer bonuses to new and old brokers alike.
5) Houwzer Company
The only problem with Houwzer Company is that they have incredibly high standards for agent performance, so finding a Houwzer Company branch close by can be difficult.
However, if you get accepted into their program, you’ll be rewarded handsomely for your hard work.
And you’ll certainly need it. When agents are working at Houwzer Company, they don’t just sell houses. They’re working on behalf of clients, making one of the most important decisions of their lives.
Agents must be respectful, patient, friendly, and knowledgeable about everything from financing options to property values before getting any information from clients.
There’s more than just commissions at stake. There are people’s livelihoods on the line too!
The key to success at Houwzer Company is time management. When an agent sells a house, they have to call their client immediately and ensure the client knows what will happen next.
They must also update relevant databases and immediately file paperwork with banks, title companies, and appraisers.
After every sale, agents must submit a report of what happened during each showing and why this particular home was chosen over others like it.
Reports may also include feedback from other agents or potential buyers about what needs improvement.
- Houwzer Company offers one of the best commission splits in all of Arizona.
- This is excellent news for new agents and a no-brainer way to get real estate.
- It’s a lot of work, but at Houwzer Company, anything less than 100% dedication isn’t tolerated.
6) Irvine Company
Average for empty nesters and retirees. Reliable, established, and family-owned in Southern California since 1972, Irvine Company is one of America’s oldest residential developers.
While they might not have as significant a presence outside of California like many other national homebuilders.
Irvine Company offers an impressive array of housing options throughout more than 200 active communities throughout California, particularly in their flagship areas of Los Angeles County, Orange County, and San Diego County.
They also have a few locations in Colorado. Another successful developer, Hovnanian Enterprises, was founded by Armenian immigrant David Hovnanian in 1969.
Headquartered in Mount Laurel, New Jersey, this firm currently operates about 60 developments nationwide (with an additional 30 underway) that range from high-rise condos to waterfront estates on both coasts. The average commission split is 6%.
- Commissions are typically 5% but can be negotiated to 7%.
- Great for individuals and families with children.
7) Grandbridge Real Estate Capital
These numbers were earned by 1,200 associate brokerages who are members of Grandbridge’s network of independent agent offices across 12 states in Middle America and on both coasts.
Although it’s headquartered in Oklahoma City, Grandbridge operates primarily in Louisiana and Mississippi.
It also serves Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Missouri, and Ohio.
Grandbridge is a full-service firm that provides brokerage services for properties ranging from affordable starter homes to estates with price tags exceeding $5 million.
The values our brokers bring to the market include years of experience with all types of buyers, said Brian Jackson, senior vice president of sales for Grandbridge. We can help them understand what type of home will fit their needs.
Grandbridge not only works with buyers but also provides expert guidance for sellers and those considering becoming a landlord or rental property owner.
- This year, Grandbridge Real Estate Capital awarded more than $43 million in REO (real estate owned) commissions to its affiliate brokerages. The average commission was more than $185,000.
8) Newhall Land and Farming Company
For a new home to sell well, it must be listed with a top-quality sales agent who is an expert in marketing homes in your area.
Newhall Land and Farming Company is famous for having some of California’s most respected agents.
By listing your property with Newhall Land and Farming Company, you are sure to work with an agent who can sell your home quickly.
The vast majority of listings sold by Newhall Land and Farming Company close within 30 days or less. Newhall Land and Farming Company’s commissions are tied to a property’s sale price.
At the time of writing, With that said, in 2011, more than half of all homes sold by Newhall were listed for $2 million or less. According to HousingWatchLA, in 2015, Newhall generated over $172 million from just 368 sales.
Given the company’s recent success with lower-priced homes, it may be worth considering whether they have more attractive commission splits for properties below $2 million.
- Newhall typically receives a 2% commission when a property sells for between $1 million and $2 million. In comparison, 3% is earned on sales above $2 million. The range at which Newhall earns 2% instead of 3% isn’t available online as far as we can tell.
9) Perini Building Company
Perini Building Company Perini Building Company (NYSE: PCR) is one of North America’s leading builders of customized, high-performance building systems.
They provide cost-effective solutions for customers in healthcare, education, sports and recreation, corporate office and technology, transportation, and other market segments.
Perini Building is proud to have been an industry leader for over 70 years.
Based in Waltham, Massachusetts, with offices across North America and worldwide, Perini provides hands-on construction management services from start to finish, ranging from engineering and architecture to general contracting through preconstruction consulting and planning.
Their people operate in partnership with their clients to provide innovative solutions that achieve results that last a lifetime.
The company was founded by Anthony J. D. Perini, who began working as a laborer on construction sites at age 14 and built his own company into one of the largest privately held companies in the United States before he died in 1999.
Perini Building Company offers competitive salary rates with generous benefits, including 401(k), medical/dental/vision insurance coverage, and flexible spending accounts for spouses and children.
With these figures, it’s not hard to see why they are one of our top picks for being one of the best in terms of quality of life. This is just another example: if you work hard enough and have faith in yourself, anything is possible.
- Perini Building Company offers their agents a whopping 80/20 commission split.
- The agents at Perini earn an incredible $15,000 per listing and $35,000 per sale.
When you first join a firm, there may be a period when your paycheck depends on training and hitting specific benchmarks.
When that’s over, agents are typically paid weekly, sometimes less frequently. Pay is almost always based on commission, which means you get a percentage of every sale you make at your office.
To make it big in real estate as an agent or broker, you’ll need to negotiate for more money upfront.
There is much room for agents to negotiate with property management firms about how much money they get for each sale.
Some firms give agents their complete 5%, while others share 2% with other sales partners and cap it at 3%.
Suppose you’re going to make a living in real estate. In that case, commission splits are something you need to negotiate before signing on with any firm.
They are not negotiable once you’ve signed your contract. For example, one agent at SimpleShowing told me I know I’m working for them, so I’m willing to work with them.
- The commission is generally 2% but can vary among offices and firms.
- A $300,000 home sale will net an agent $6,000 if they have a 3% cut of sales and work at an average firm.
When purchasing a home, it’s easy to get distracted by features like curb appeal and hardwood floors.
But there’s another crucial detail that buyers don’t always prioritize: How much of your commission goes to an agent. Most commissions are between 5% and 6%, with some Realtors charging a flat fee for their services.