eXp Realty

How eXp Realty Commission Split Works

Last updated on: Published by: John Kinnunen 0
How Real Estate Commission Splits Work

eXp Realty commission split is the exact same for every real estate agent. This puts every real estate agent at eXp Realty on a level playing field there are no secrete deals at eXp Realty. eXp Realty offers agents a great commission split at 80/20. Every brokerage has a commission split some 60/40 some are 90/10, while others brokerages have a 50/50 commission split. I was on a 60/40 commission split with my old brokerage before joining eXp Realty. Of the 60%, I got to keep they took an additional 7% of that for a franchise fee. Here at eXp Realty they only take 20% of your commission up to $16,000.  At my old brokerage, they stopped taking that 40% when I reached $21,000 and continued taking the 7% for a franchise fee. At eXp Realty we don’t have franchises so there are no franchise fees and there are no desk fees.

 

The 80/20 eXp Realty commission split is a win-win for everyone. Say you are a part-time real estate agent and you don’t cap but you sell 4 homes a year. Each time you close you put 80% of your commission in your pocket. If you were at a brokerage with a 50/50 commission split you would only put 50% of each transaction in your pocket.

 

Let me break down the eXp Realty commission Split and how it works

 

eXp Commission Split 

  • 80/20% Split until you reach the Cap of $16,000. You keep 80% of your commission 20% goes the eXp Realty up to $16k (approx. 80k Gross Commission Income) then it goes to 100% 
  • After you have capped you’ll pay a fee of $250.00 for each transaction up to $5,000 (20 transactions) or if you sell luxury real estate it’s different. See the link below on icon agent to see how it is different. 
  • Transaction fee drops to $75 once you’ve reached 20 post cap transactions or you’ve reached $500k in Gross Commission Income and you have paid the $5k at which time you will become an Icon Agent. ICON agent means you can get all 16K you paid to the brokerage back in company stock. (see ICON agent – ask for more details) 
  • For every transaction, you pay $40 in E&O insurance until you’ve completed 12.5 Transactions (Cap is $500 in most of USA)
  • For every transaction, you pay $25 for Broker review fee (No limit but well worth it)
  • You are allowed 3 Free Personal Transactions per year with only a $250 Fee + BIC and E&O
  • There are 3 different ways to get stock in the company ( STOCK OWNERSHIP)

 

exp fees and split

 

Additional: Are Zero Desk Fees Really a Thing With eXp Realty?

 

General Commission Splits

eXp Realty offers an 80/20% split until agents reach a total of $16,000 and then they can go to 100% commission. After an agent has reached the cap of $16,000, they’ll pay a fee of $250 for each transaction. Those transaction fees dropped to $75 once the agent has reached 20 transactions. From there, every transaction will require a $40 fee in E & O insurance until the agent has completed 12.5 transactions. With each transaction, agents will pay $25 for broker review fees, which has no limits. eXp Realty also has three free personal transactions with a $250 fee, which includes review and insurance.

eXp Realty has no desk fees, royalty or franchise fees.

 

Related: What is the Difference Between a Broker and an Agent?

eXp Realty Commission Splits

eXp Realty has four different kinds of commission splits for their agents. Let’s break down each one.

New agents will join with a $149 setup fee that includes 1000 business cards, a lead generation website, access to content management systems, membership in the Regus Business Center, toll-free phone numbers, Google apps for work, storage, and email, Breakthrough Broker Membership, Sky slope Transaction Management System, and access to eXp World, their virtual campus. At this point, the commission is 80/20% until the agent reaches there for $16,000 in fees for that 20%. After that, the agent can keep 100% of the commission for the remainder of the year.

If an agent sells less than three properties within a 12 month period, they will be automatically in the mentor program, where they will incur an additional 20% split for the first three transactions with a local mentor.

Once a real estate agent meets the $16,000 cap for split, they go into 100% commission. They will always have a $40 risk management fee (until an agent has paid in $500), and a broker review fee of $25. Each transaction will now cost $250 and there will be a monthly fee of $85 that covers lead generation tools and University tuition, which includes 60+ hours of live training classes, guest speakers, workshops and sessions.

Once an agent has completed 20 transactions, that $250 fee drops to $75. At this point, high-earning agents get 100% commission, only pay $75 per transaction, $85 monthly lead generation tool fee, and $25 broker review fee. There are no other real estate brokerages out there offering less than $200 per transaction or monthly fee than eXp Realty!

 

Part-Time Vs Full-Time Real Estate Agent

Stock Purchase Plan

It is unheard of for an agent to get stock in the brokerage until eXp Realty was created. There are multiple different ways for a eXp real estate agent to earn stock in the company and they can opt to receive 5% of their commission check back at a 10% discount.  To learn more about the different ways for an agent to receive company stock click here. EXPI Agent Stock program.

 

Learn More about eXp Realty

 

 

eXp Realty

Part-Time Vs Full-Time Real Estate Agent

Last updated on: Published by: Tim 0
Part-Time Vs Full-Time Real Estate Agent

Part-Time Vs Full-Time Real Estate Agent – Have you been considering a career in real estate? There are a lot of questions and things to consider when you’re choosing a career in real estate. Do you want to work part-time or full-time? Why are you getting your real estate license? Are you doing it just to buy and sell your own property or to actually have a business? And, speaking of business, are you looking to have a business or just provide a service to friends and family? Part-time or full-time?

Real estate is not for the faint of heart. You have to deal with a lot of different individuals with each transaction and because the dynamics vary based on everyone involved, each transaction is going to be different. No amount of real estate education is going to prepare you for hands-on training that you’ll get through actual experience. This is why experience is almost more valuable than just basic knowledge and book smarts.

In this article, we’re going to talk about the differences between part-time and full-time agents, what might work best for you, and how much money you can make doing either.

Part-Time Vs Full-Time Real Estate Agent

Part-Time Vs Full-Time Real Estate Agent

Is being a part-time real estate agent worth it?

Disadvantages to being a full-time real estate agent.

You will have a full schedule. You have to manage your time effectively otherwise you will be at people’s back and call all hours of the day and night. Real estate agents tend to work around the clock because nights and weekends are the prime time for showing buyers different homes. But, this also means that you could be working when you don’t want to or setting your hours to work when you want, even though that might actually cost you some business.

Being a full-time real estate agent is a financial commitment. With prelicensing fees, state exam fees, renewal fees, and of course all of the upfront costs, marketing, and desk fees that a lot of brokerages charge, it could be a while before you actually make a profit.

How a real estate agent gets paid is usually by making a commission when they sell a home. Once you close a transaction they you usually have to split that commission with your broker. Each brokerage is different so it is hard to say what that split is going to be for you. When I started out I was with Berkshire and was on a 60/40 split and they took 7% franchise fee and I had a $21,000 cap. What that means is 60% of the commission check was mine 40% was the brokerages up to $21,000 and an additional 7% of my 60% went to the franchise and there was no cap on that 7%. Once I hit the $21,000 then they just took the 7%.

I switched to eXp Realty where they had no franchise fee and everyone is on an 80/20 split up to 16k cap. Click here to learn more about eXp Realty’s commission. At exp realty, there are no desk fees, no franchise fees and you have the opportunity to earn stock in the company. Click here to find out how much eXp real estate agents actually make.

Once you become a broker you can create your own company or you can be an associate broker for an already existing company. Click here to learn more about brokers vs associate brokers. You have to be a licensed real estate agent for a certain amount of time before you can even get your broker’s license, which means you’ll need to hang your license with a brokerage like eXp Realty.

Advantages to being a full-time real estate agent

You can get ahead of the competition by knowing the market better by being a full-time real estate agent. As a part-time agent, you may miss some of the nuances to what’s going on in the housing market, especially in niche markets, certain neighborhoods, and communities. When you are a full-time real estate agent, you stay up on these a lot better having a clear and distinct knowledge base to help buyers and sellers. As a full-time agent you’ll spend a significant amount of time focusing on market trends, inventory, and local home values as well as when things sell and how they sell. You’ll have a better understanding of the industry, which will gain you more clients and a better salary.

You probably have an easier time picking the right brokerage. Brokers want to know that you are in it to win it. Even if they have to train brand-new agents, training full-time agent means they’re likely to get the value back out of the agent. By putting in a ton of training hours for an agent that might sell one or two houses a year and do it on the weekends when they feel like it, may not be worth it. When your broker knows you are all in, they usually will be all in in backing you.

You’ll have a better schedule. If you are a part-time agent, chances are that means you are a part-time or full-time employee somewhere else. This can be difficult to make listing appointments, schedule showings, and working your day job around a real estate schedule. When you work full time, you are in control of your schedule, the hours you work, and your income and this also means that you can earn as much as you like. Your financial potential can be unlimited.

Related: 100 Things I Wish I’d Known Before Getting Into Real Estate

 

Do part-time real estate agents make money?

I know part-time real estate agents that make $100,0000 a year, and I know part time agents that make 10k per year. I have worked with 100’s of real estate agents and it always comes down to these factors. What’s your brokerages split? Does your brokerage charge a franchise fee? What does your brokerage have monthly fees? What kind of training does your brokerage offer? Are you willing to work?  There is so much that goes into being a real estate agent that making a 100K your first year is hard but with the right training you can do it but chances are, you’re going to be giving that money away in the form of split commissions and transaction fees. By working full time, your income potential is unlimited and once you meet your cap at whatever brokerage you are at like here at eXp Realty it is $16,000, meaning you’ve paid into the brokerage $16k and you then get to keep 100% of your commission. There are very few if any brokerages that actually allow that allow you to keep 100% of your commission once you hit that cap usually they all have some kind of franchise fee.

More: How to Make 100K Your First Year in Real Estate

 

Is it hard to be a part-time real estate agent?

Being a real estate agent regardless of full-time or part-time is a giant leap of faith and a lot of investment in your time and money. Starting off as part-time might be ideal while hanging onto the steady income of your “day job”. You may not be able to make a full salary by selling real estate part-time. You will need to manage your time, budget, and effort in a variety of different ways even if you don’t have another job.

You want to dedicate at least an hour or two a day for lead generation, stick to your schedule, set clear expectations about your availability to clients, and work with a mentor to help map out your business. Make sure you get proper training even if you’re planning on doing it part-time. You want to build a concierge list of real estate professionals like handymen, appraisers, and inspectors.

More: 20 Questions to Ask When Interviewing Brokerages

How much money does a part-time real estate agent make?

It really depends on how much each agent is willing to put in and what part-time looks for you. Is part-time 20 hours a week or 30? Five hours a week or 10? Real estate truly is one of those industries that the harder and longer you work the more your potential income can grow. But, it’s important to work smarter, not necessarily longer or harder. Having a mentor map out your business plan ahead of time regardless of however many hours you want to work will put you in the right direction and maximize the time that you do work on your business.

 

What does it mean to be a full-time real estate agent?

I would say there are two things that really matter when it comes to a full-time real estate agent; income potential and knowledge. The longer you’re in real estate the more you learn, the more experiences you have, and the more problem-solving techniques and negotiation strategies you acquire. Plus, the more hours you put in the more earning potential you could gain.

For more information on eXp Realty and how commission splits work, what it’s like to join eXp Realty, eXp Realty Stock Options and fees, and more Part-Time Vs Full-Time Real Estate Agent Contact me below at any time.

More: The Pros and Cons of eXp Realty

eXp Realty

Are Zero Desk Fees Really a Thing With eXp Realty?

Last updated on: Published by: Tim 0
Are Zero Desk Fees Really a Thing With eXp Realty?

eXp has zero desk fees. Yes, that is right. Essentially because eXp Realty is a virtual brokerage so it doesn’t make sense to have charges for a desk when there really is no office. However, there are certain fees associated with being an agent or broker with eXp. Similar to a typical brick-and-mortar brokerage, there are fees that go into covering overhead expenses. There are also no royalty fees or franchise fees. The revolutionary virtual office business model does away with all these additional fees unlike most traditional brokerages. Agents can keep 80% to 100% of their commissions and enjoy a low company cap.  Let’s break down the fees in being an agent with eXp Realty.

 Join eXp Realty Today

Upfront fees

When you join eXp Realty there is a $149 start up fee that includes 1000 business cards, a lead generation website, contact management system, membership in the Regus Business Center, toll-free phone numbers, Google apps for storage and email, brokerage membership, Skyslope Transaction Management System membership and access to eXp’s virtual campus.

Commission Splits

Agents who join eXp Realty adhere to an 80/20 commission split until that agent reaches a $16,000 annual cap, meaning you’ve paid in $16,000 and then you keep 100% for the rest of the year. eXp Realty offers equal commission splits across the board. No agent receives exclusive deals unlike many other real estate brokerages. All ages pay the same commission split in fees

regardless of tenure or transaction volume.

Read More:  How to Increase Your Real Estate Salary

Transaction fees

After the $16,000 cap, there is a $250 transaction fee for the next 20 transactions and then $75 per transaction after that.

Mentor program

The eXp Mentor Program is for agents who sold fewer than three homes or properties in the past 12 months. There is an additional 20% split for the agent’s first three transactions with a local mentor.

E&O InsuranceAre Zero Desk Fees Really a Thing With eXp Realty?

eXp Realty covers the errors and omissions insurance by each transaction. Agents pay $40 per sale until they reach a $500 annual cap and a $25 broker review fee to ensure contracts are accurate.

Cloud Brokerage Fee

eXp Realty offers a “Cloud Brokerage Fee” which covers the brokerage’s software, online support, and other online platforms that agents may utilize. Many other brokerages have fees of over $300 a month for similar services but eXp offers it to all of their clients. It also covers a state-of-the-art CRM called kvCore. This is a real estate-specific CRM that ties in listings with a marketing backend strategy. This fee is $85 per month.

Related: REDX for Real Estate Agents – Do I Need it?

Money Back

One of the largest benefits of joining eXp Realty is that you can recover your entire commission split back as a result of hitting Icon Agent Status. This is when an agent has hit their commission cap and fees cap and is met the cultural requirements put forth by the brokerage. This means you’ve provided mentorship, offered a webinar or seminar, or generally participated in the culture of providing support to other agents. Once you are an Icon Agent, you are eligible to receive your entire commission split back in the form of equity in the company.

For agents who are top performers, they are working in a 100% commission split with the otherwise low transaction and brokerage fees, something that no other brokerage out there has. Like equity, the amount agents are earning back can be worth a lot more than their original split.

In addition to this investment, agents can get equity rewards in other ways. When ages close their first transaction each year they get $200 worth of EXPI stock. If ages introduce or sponsor an agent and they sell their first home with eXp Realty they get $400 worth of stock. This Agent Stock Purchase Plan can give ages the opportunity to buy at a 10% discount on the market value of the stock.

Example:

Let’s take an example that eXp uses. For an agent that sells around 10 to 12 homes per year and is $80,000 GCI, that agent could potentially save over $8000 per year with eXp Realty. Top producing agents to sell about 25 homes or more and generate upwards of $300,000 in GCI, their savings is about $60,000.

 Join eXp Realty Today

To learn more about joining eXp Realty and how you can start saving money, investing, and getting 100% of your commission splits, contact me below. I’d love to offer more information or help you join eXp Realty today.