Trends
How do high brokerage splits affect real estate agent profitability?
Real Estate Agents
Real Estate Marketing
Mortgage
Buyers
Sellers
Answer
High brokerage splits decrease an agent's take-home pay significantly by slicing gross commission income. For example, splits over fifty percent can halve net profits, making one home sale per month insufficient to meet expenses. Agents must negotiate splits or consider independent models to improve margins. Lowering splits combined with optimizing other costs helps agents sustain income on fewer transactions.
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