Table of Contents
Introduction
For new real estate agents, choosing the right brokerage is a critical career decision. Our guide explores the top 10 brokerages based on peer reviews, training, support, and commission structures. We’ll also weigh the pros and cons to help you make an informed choice, whether you prefer tradition or tech-driven options.
Top 10 best real estate brokerages for new agents
Keller Williams
Agent Split:
- Keller Williams offers a 70/30 commission split, meaning that 70% of the commission goes to the agent and 30% goes to the broker.
- The commission split is the same across all Keller Williams franchises.
Fees:
- Keller Williams charges a monthly fee of $50.
- There is also a 6% franchise fee on each transaction, but this fee is capped at $3,000 per year.
Pros:
- Largest real estate agency based on agent count.
- Offices all over the world.
- Training classes to help new agents learn the ropes.
- Profit-sharing program that financially rewards agents for growing their market center by recruiting and sponsoring real estate agents into the company.
- Solid commission splits.
Cons:
- Some agents may find the company culture too competitive.
- Commission split may be unfavorable to the agent and is very high in comparison to other brokerages.
- Cap on the amount of commission that agents can keep.
- High-performing agents with years of experience will have the same commission structure as new agents.
Overall, Keller Williams is a good option for new agents who are looking for a large, global brokerage with training and mentorship programs. However, agents should be aware of the commission split and fees, as well as the company culture, before deciding if Keller Williams is the right fit for them.
RE/MAX
Agent Split:
- RE/MAX offers a variety of commission split plans that vary by location and sales performance.
- The most well-known commission split plan is the 95/5 split, in which the agent keeps 95% of the commission, and the broker keeps 5%.
- Other commission split plans include 80/20, 70/30, and 60/40.
- The commission split percentage is based on the agent’s sales performance from the previous year.
Fees:
- RE/MAX fees vary by location and commission split plan.
- Some agents may be required to pay a monthly desk fee, while others may have a cap on the amount of commission they can keep.
Pros:
- Traditional brokerage with access to offices and equipment.
- Training classes for new agents.
- Offers a variety of commission split plans.
- RE/MAX is a well-known brand with a large network of real estate professionals.
- RE/MAX has a global network that allows agents to connect and collaborate with colleagues and clients around the world.
Cons:
- Commission split plans may not be as favorable for experienced agents.
- Some agents may find the commission splits too high.
- Fees may vary by location and commission split plan.
- Some agents may feel a sense of unfairness for those on a higher commission split plan.
Overall, RE/MAX is a good option for new agents looking for a traditional brokerage with access to offices and equipment, as well as training classes. However, agents should be aware of the commission split plans and fees, as well as the company culture, before deciding if RE/MAX is the right fit for them.
Coldwell Banker
Agent Split:
- Coldwell Banker commission splits vary between branch offices within the franchise system.
- The commission split structure is gradual, allowing agents to improve their splits with more experience or as they sell more homes.
- For example, new real estate agents might start with a 50-50 commission split (50% to the broker and 50% to the agent), while some offices offer 55/45 or 60/40 splits.
- Coldwell Banker does not have a CAP program.
Fees:
- Coldwell Banker fees vary by location and commission split plan.
- Some agents may be required to pay a monthly desk fee, while others may have a cap on the amount of commission they can keep.
Pros:
- Training and mentorship programs for new agents.
- Access to a large network of real estate professionals.
- Investment in tools, technology, and training for agents.
- Well-known brand with a long history in the real estate industry.
Cons:
- Commission splits may not be as favorable for experienced agents.
- Fees may vary by location and commission split plan.
- Some agents may feel a sense of unfairness for those on a higher commission split plan.
Overall, Coldwell Banker is a good option for new agents seeking a traditional brokerage with training and mentorship programs, along with access to a large network of real estate professionals. However, agents should be aware of the commission split plans and fees, as well as the company culture, before deciding if Coldwell Banker is the right fit for them.
Real
Agent Split:
- All agents at Real have an 85/15 commission split.
- Agents keep 85% of their commission and pay 15% to Real until they reach their cap, which is $12,000 per year.
- The commission split applies whether you are on a team or a solo agent.
Fees:
- Real does not charge any fees.
Pros:
- Virtual brokerage with a straightforward and generous program of splits and stock options.
- Customizable marketing resources.
- Ability to build ownership in your own business.
- No fees.
- Real is a technology-driven brokerage that offers a range of tools and resources to help agents grow their business.
Cons:
- May not be the best fit for agents who prefer in-person interaction.
- Real is a relatively new brokerage, so it may not have the same level of brand recognition as more established brokerages.
Real appears to be a good option for agents looking for a virtual brokerage with a generous commission split, stock options, and customizable marketing resources. However, agents should consider whether the lack of in-person interaction and the relatively new status of the brokerage align with their preferences and needs.
Compass
Agent Split:
- Compass commission splits vary by location and sales performance.
- Commission splits can range from 50/50 to 90/10, with agents keeping 90% of a commission and giving their firm 10%.
- The average commission split at Compass is around 80%, but specific information may be hard to find.
- Agents negotiate with the brokerage for the commission split they think they deserve, so more experienced and successful agents often make more.
- Some offer letters allow brokers to keep 100% of their commissions on their first eight deals.
Fees:
- Compass fees vary by location and commission split plan.
- Some agents may be required to pay a monthly desk fee, while others may have a cap on the amount of commission they can keep.
Pros:
- Best for agents in the luxury market.
- Compass is a technology-driven brokerage offering tools and resources to help agents grow their business.
- Customizable marketing resources.
- Ability to build ownership in your own business.
- Compass has a luxury feel to its work.
- Offers an exclusive concierge service to help with staging, repair, etc.
Cons:
- May not be the best fit for agents who are just starting out.
- Commission splits may not be as favorable for experienced agents.
- Fees may vary by location and commission split plan.
- Compass is a relatively new brokerage, so it may not have the same level of brand recognition as more established brokerages.
- Compass has faced criticism for its unsustainably generous commission splits.
Overall, Compass suits luxury agents, emphasizing tech-driven, customizable marketing, and ownership. Be cautious about splits, fees, culture, and location-specific considerations.
eXp Realty
Agent Split:
- All agents at eXp Realty receive an 80/20 commission split.
- Agents keep 80% of their commission and pay 20% to eXp Realty until they reach their cap, which is $16,000 per year.
- Once an agent reaches their commission cap, they can keep all their income.
- There is a $250 transaction fee for the next 20 transactions, which falls to $75 after that.
- Agents can save money due to eXp Realty’s zero royalty and franchise fees, low startup fees, and minimal E&O Insurance.
Fees:
- eXp Realty does not charge any fees.
Pros:
- Completely virtual brokerage with customizable marketing resources.
- Ability to build ownership in your own business.
- Offers a range of training and mentorship programs.
- No fees.
- A technology-driven brokerage that provides tools and resources to help agents grow their business.
- Generous commission split.
Cons:
- May not be the best fit for agents who prefer in-person interaction.
- Commission split may be unfavorable to the agent compared to other brokerages.
- eXp Realty is a relatively new brokerage, so it may not have the same level of brand recognition as more established brokerages.
Overall, eXp Realty is a good option for new agents looking for a completely virtual brokerage with customizable marketing resources, ownership-building opportunities, training and mentorship programs, and a generous commission split. However, agents should be aware of the commission split and fees, as well as the company culture, and consider the potential variation between different eXp Realty locations. Additionally, as eXp Realty is relatively new, it’s essential to research the specific location’s culture and support before making a decision.
Century 21
Agent Split:
- Century 21 commission splits vary by franchise.
- Most offices start new agents with a 50/50 commission split arrangement.
- During the “training period,” new agents receive mentorship to enhance their selling skills.
- After the training period, agents at this franchise typically move to a 70/30 split where they keep 70% of their gross commission.
- Some offer letters allow brokers to keep 100% of their commissions on their first eight deals.
- The commission split structure is gradual, allowing agents to improve their splits with more experience or as they sell more homes.
- Agents can negotiate with the brokerage for their desired commission split.
Fees:
- Century 21 fees vary by location and commission split plan.
- Some agents may be required to pay a monthly desk fee, while others may have a cap on the amount of commission they can keep.
Pros:
- Training and mentorship programs for new agents.
- Access to a large network of real estate professionals.
- Investment in tools, technology, and training for agents.
- A well-known brand with a long history in the real estate industry.
Cons:
- Commission splits may not be as favorable for experienced agents.
- Fees may vary by location and commission split plan.
- Some agents may feel a sense of unfairness for those on a higher commission split plan.
Overall, Century 21 is a good option for new agents seeking a traditional brokerage with training and mentorship programs, access to a network of real estate professionals, and brand recognition. However, agents should be aware of the commission split plans and fees, and consider how these factors align with their preferences. Experienced agents may find the commission splits less favorable compared to other brokerages.
Sotheby’s International Realty
Agent Split:
- Sotheby’s International Realty commission splits vary by franchise.
- The commission split for new agents starts at 70/30, which is slightly below average.
- Agents can negotiate for a higher commission split as they gain experience and sell more homes, potentially reaching 90/10.
- Each agent can negotiate their desired commission split with the brokerage.
- Some offer letters allow brokers to keep 100% of their commissions on their first eight deals.
- The commission split structure is gradual, allowing agents to improve their splits with experience.
- Sotheby’s International Realty has a cap system that varies by location, typically ranging between $18,000 and $30,000.
- Agents may still have to pay a percentage fee with every transaction even after reaching the cap, though the exact amount is not clear.
Fees:
- Sotheby’s International Realty fees vary by location and commission split plan.
- Some agents may be required to pay a monthly desk fee, while others may have a cap on the amount of commission they can keep.
Pros:
- Ideal for agents in the luxury market.
- A well-known brand with a reputation for luxury.
- Access to a large network of real estate professionals.
- Investment in tools, technology, and training for agents.
- Offers a range of marketing resources to help agents grow their business.
Cons:
- Commission splits may not be as favorable for experienced agents.
- Fees may vary by location and commission split plan.
- Some agents may feel a sense of unfairness for those on a higher commission split plan.
Overall, Sotheby’s International Realty suits luxury agents, offering a prestigious brand, network, and marketing support. However, consider fees and culture; experienced agents may prefer more favorable splits.
Berkshire Hathaway HomeServices
Agent Split:
- Berkshire Hathaway HomeServices commission splits vary by franchise.
- The commission split for new agents starts at 60/40, which is slightly below average.
- Agents can negotiate for a higher commission split as they gain more sales, potentially reaching splits of 80/20 or 90/10.
- The commission split structure is gradual, allowing agents to improve their splits with experience and increased sales.
- Agents can negotiate with the brokerage for their desired commission split.
Fees:
- Berkshire Hathaway HomeServices fees vary by location and commission split plan.
- Some agents may be required to pay a monthly desk fee, while others may have a cap on the amount of commission they can keep.
Pros:
- Training and mentorship programs for new agents.
- Access to a large network of real estate professionals.
- Investment in tools, technology, and training for agents.
- A well-known brand with a long history in the real estate industry.
Cons:
- Commission splits may not be as favorable for experienced agents.
- Fees may vary by location and commission split plan.
- Some agents may feel a sense of unfairness for those on a higher commission split plan.
Overall, Berkshire Hathaway HomeServices is a good option for new agents looking for a traditional brokerage with training and mentorship programs, access to a network of real estate professionals, and brand recognition. However, agents should be aware of the commission split plans and fees, and consider how these factors align with their preferences. Experienced agents may find the commission splits less favorable compared to other brokerages.
Redfin
Agent Split:
- Redfin is not a traditional brokerage and does not offer a commission-based compensation model.
- Redfin agents are full-time employees who receive a salary and benefits.
- The median agent salary, including bonuses and Redfin stock, was $112,200 in 2020.
- The average Redfin agent salary is currently $73,061 per year, but it varies based on the market and experience.
- Redfin bonuses are based on reaching certain professional goals.
- Agents who achieve these goals earn higher base salaries.
- Redfin offers full-time employees a healthcare package, paid leave, parental leave, a 401(k), and the opportunity to buy Redfin stock.
- Redfin pays out $20,000 in bonuses to each agent yearly.
Fees:
- Redfin does not charge any fees.
Pros:
- Technology-powered brokerage providing a steady income for new agents.
- Access to a large network of real estate professionals.
- Well-known brand with a reputation for innovation.
- Offers tools and resources to help agents grow their business.
- Redfin agents work in a team, so they are not responsible for marketing, paperwork, and legal aspects.
Cons:
- Not suitable for agents who prefer commission-based compensation.
- Agents may be limited to the projects assigned by the company.
- Redfin is a relatively new brokerage, so it may not have the same level of brand recognition as more established brokerages.
Overall, Redfin is a good option for new agents seeking a steady income and a technology-powered brokerage with access to a network of real estate professionals. However, agents should be aware that Redfin does not offer a commission-based compensation model, and they may have limited flexibility in choosing their projects. Additionally, as Redfin is relatively new, it’s essential to research the company culture and support offered by specific locations before making a decision.
Conclusion
In conclusion, selecting the right brokerage is pivotal for new real estate agents. Our guide has delved into the top 10 options for best real estate brokerage for new agents, weighing peer reviews, training, support, and commission structures. We’ve also outlined the pros and cons to assist you in making an informed choice. Whether you prefer tradition or tech-driven, we hope this information aids your decision-making. Remember, thorough research and thoughtful consideration are key to a successful real estate career.