In the world of real estate, being a 100% real estate commission broker has its advantages. The biggest, and easiest to understand, is that this kind of broker doesn’t have to split his commission with the agency. This way he gets to keep all the money he makes on any transaction. This might sound like a fairytale to some, but it is one of the most commonly-used pricing systems out there.
Becoming a real estate broker, especially a successful one, can take time. You have to compete with other brokers for listings and you have to build your reputation in order to get more clients. You have to invest in a lot of things in order to get to the top, and that is why it is important for each broker to keep as much of each commission he makes on each transaction.
But how much can a broker actually make?
It all comes down to simple math. Unlike traditional pricing systems, where the broker would split his commission with the agency he is working for, a 100% real estate commission broker doesn’t have to do that. Traditional systems would have the broker paying 50% of his commission to the agency, for instance. That means that for a $5,000 commission on a transaction, the broker would get to keep only $2,500.
This system guarantees that the broker keeps every cent of his commission, and only has to pay a transaction fee to the agency. This means that, out of the same $5,000 commission, the broker would only have to pay somewhere between $300 and $800 in Florida, depending on the area and the total cost of the property. So, at the end of the day, the 100% real estate commission broker walks away with $4,200, which is $1,700 more than in a traditional scenario.
