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How Are Real Estate Commissions Split?

How Are Real Estate Commissions Split?

Most people outside of the real estate sales industry are not clear on how the Real Estate Commission is paid and then split. We are going to show you how a “normal” real estate transaction might appear, and then we’ll show you how it would appear using The Ultimate Marketing Partner System™ to complete a transaction using state-of-the-art real estate tools and technologies through the Listing Services of MORE Realty Services LLC.

First, we look at a traditional full service listing by a typical big box brand. One of the first things a Home Owner looking to sell as a For Sale By Owner will notice is the add-on fee they call a “Transaction Fee”. They can range from $99 as high as $1,000. Nearly every single agent using those brand names will tell you something different as to what the fee is used for, but it narrows down to a “compliance fee”.

Compliance Fee means nothing more than PROFIT. Do not be fooled by this trick, and yes it is a trick. The State of Florida Licensing Law REQUIRES that a Broker keep the files of a Transaction that resulted in a Contract for a minimum of Five (5) Years. It is Mandatory. As the Broker of MORE Realty Services LLC, I can not simply throw your files out because you refuse to pay this fee, I must maintain those records under law. So, as you can see, it is for profit, and it is a lie. Do you want to trust your home with people lying to you from the start?

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The Split; Generally an Agent wants to get as much as they can, usually under the instruction of their Broker. The Broker – not the Agent – owns the Listing Contract. Ultimately it is the broker’s signature you will see once you receive the Listing Agreement you signed back, again not the Agent that is presenting to you. The Broker wants a piece of that Agents work. The illustrations below shows the Commission Split process.

Commission split process Illustration A1

The most typical situation is that the Listing Commission is Split with a Selling Broker. It is rare for the Listing Broker to also procure the Buyer, no matter the level of marketing, mostly because of the number of competing Buyers Agents. The Illustration below shows a typical transaction split.

The Listing Agreement Split  Illustration A2

Compare our Flat Fee Listing Service to the other brand and you cans ave substantial amounts of your equity that can be used to buy another home, pay off debt, or take a vacation – whatever you choose to do – after all it is Your Equity! flat fee listing service cost


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