Agent Resources

How Do Real Estate Brokerage Fees Work?

Splits get the attention, but the fees around them add up too. Here are the usual ones and how to compare them.

The Main Ways Brokerages Charge

Commission split. A percentage of every commission, such as 70/30 or 80/20.
Cap. A yearly limit on the split. After you reach it, the split stops until the cap resets. Our guide to brokerage caps covers how they work.
Monthly fee. A flat amount each month, sometimes called a desk fee.
Per transaction fee. A flat amount charged on each closed side.
Annual fee. A once a year charge, sometimes billed on your anniversary date.

Fees That Are Easy to Miss

Technology fees for the brokerage's software
Risk management fees
Franchise or royalty fees
Setup or onboarding fees when you join
Transfer fees when you move your license
Marketing contributions

Not every brokerage charges all of these, and some charge none. The point is to ask, so nothing shows up later on a settlement statement.

What Usually Is Not a Brokerage Fee

MLS dues, association dues, licensing fees and E&O insurance are generally paid by the agent directly to those organizations, whichever brokerage you are with. They are real costs, but they are not a difference between brokerages, so keep them out of your comparison.

Resident Realty's Fees

Standard Plan. $50 per month plus $300 per transaction side.
Top Producer Plan. $249 per month with no transaction fee.

There is no split, no setup fee and no transfer fee. Agents keep 100% of their commission on both plans.

Questions to Ask Before You Sign

Can I have every fee in writing, including fees after a cap?
When is each fee charged: monthly, per closing, yearly or at joining?
Do any fees change based on my production?
What does the brokerage provide for those fees?
What does it cost to leave, if I ever do?

Then add it all up for a typical year of your business and compare the totals.

Frequently Asked Questions

Two plans. The Standard Plan is $50 a month plus $300 per transaction side. The Top Producer Plan is $249 a month with no transaction fee. There are no setup fees and no transfer fees.

It depends on volume. Below 8 transaction sides a year the Standard Plan is usually cheaper. At 8 or more, the Top Producer Plan is, because the per transaction fee stops applying.

Usually not. MLS, association and licensing fees are generally paid by the agent directly to those organizations, whichever brokerage you are with. Ask any brokerage which costs are theirs and which are yours.

Keep Reading

Keep 100% of Your Commission

Two plans, no percentage split, licensed in Colorado, Arizona and Texas.

Join Resident Realty