What Commission Structure Do
You Use for Your Licensed Agents?
There is no single answer to this question. A brand new real estate agent who has just gotten their real estate license generally starts out with a 50/50 split. Every company is different. Some will pay a higher commission but also charge a “desk” fee or other fees. Agents who decide to affiliate with DMS Properties, LLC Residential Real Estate Services can expect to be on a 50/50 split to start and will pay minimal expenses. We do not charge any “desk” or “transaction” fees. The split will change as an agent’s production increases.
Our research shows that many other real estate companies calculate commissions based on a “calendar year” 12-month period. We use a graduated scale based on production over a “rolling 12-month period” to determine the commission split. What this means is that an agent’s production level doesn’t go back to $0 at the end of the year. We also include commissions received for property rentals in the overall production statistics. That is calculated based on a 2.5% “commission” for the rental amount.
We are also developing a program with a somewhat higher split, but one that includes a monthly “Desk” fee. in essence, an agent can “buy up” their commission split if they like. The same “rolling 12-month period” to calculate agent production is used here, too. You can read more about Our Real Estate Career Information. We then urge you to Contact Us to discuss your career development.
Experienced agents who affiliate with us may be able to start out at a different split. It would be based on their verified production at their previous company. We will review the agents’ total production (listings, rentals, buyer, tenants, etc.) to calculate their production over the previous 12 months. That would determine the commission split that the agent can expect to receive without any “buy up” of the rate.
Ideally, we would expect all of our real estate agents to generate annual production of at least $1 million during any 12-month period. As mentioned above, though, that would include rental transactions, too. One of our goals is to help agents who affiliate with DMS Properties, LLC Residential Real Estate Services to become successful. According to the National Association of Realtors, 80% of people who get their real estate license will give up within the first 2 years.
DMS Properties, LLC Residential Real Estate Services charges a 6% commission on our resale listings for homes and land. That doesn’t usually apply to REO properties. On a 6% listing, a Real Estate Agent will earn 3% per side of the transaction (before the broker “split”), so $1 million in production could generate pre-tax and pre-expense income of $15,000. Once an agent exceeds the $1 million production level, the split will change and will increase at $500,000 increments up to a 90% level at $5 million in annual production.