Mode Agent Blog

Is it Time to Move on from the Traditional Agent-Broker Split?

Posted by Caitlin Smart on Nov 22, 2017 4:10:43 PM
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At Mode Realty Group, we strive to be different. The Mode VIBE is something we pride ourselves on and continue to work toward improving every day for our agents and the Treasure Valley community. Part of our VIBE is ensuring our real estate agents have an unmatched level of support including sophisticated and user-friendly software, personalized apps on their smartphones for their buyers and sellers to easily access, in-person and online real estate training, and so much more in an open collaboration work environment to guarantee our agents' success.

In addition to all the support at their fingertips, we also provide our agents with something some would say is even more valuable... by providing them with a flat fee structure which allows them to keep more of their commission in their pocket--with every single transaction. 

Mode's Flat Real Estate Broker Fee

Most real estate agents are well-versed in the traditional splits with their broker. From 70/30 to 60/40, to even 50/50, agents have seen it all. But here at Mode Realty Group we wanted to provide the best of both worlds by provided a flat fee, but with all the bells and whistles. Our broker wants our agents to keep more of their money in their pockets while including the agent tools, business classes, and VIBE that other flat fee brokerages rarely include. 

Here is a Common Real Estate Transaction Scenario

You sell a house for $200,000 with a commission rate of 6% split between you and the buyer's agent. 
$200,000 (sales price) x .03% (your split of the commission rate) = $6,000 

Let's see what happens to that $6,000 when you work with traditional real estate brokers:

Example 1: Realty Group Z
$6,000 x .70 (70/30 split) = $4,200 in your pocket, $1,800 for your broker

Example 2: Realty Group Y
$6,000 x .60 (60/40 split) = $3,600 in your pocket, $2,400 for your broker

Example 3: Realty Group X
$6,000 x .50 (50/50 split) = $3,000 in your pocket, $3,000 for your broker

Now see what happens to that $6,000 when you work with Mode Realty Group:

Example 4: Mode Realty Group
$6,000 - $900 (our flat fee) = $5,100 in your pocket. No split, allowing you to keep 100% of your commission after our flat fees. 

You can find the same outcome with any sales price. Stop giving away so much of your hard-earned money!

Not Your Typical Flat-Fee Discount Real Estate Brokerage 

The best part is that even though you pay less, Mode also doesn't fit into the same box with the "discount" real estate brokerage either. Because, sure, there are other brokers out there who say they are happy to keep costs down for real estate agents who don't need all the frills. Frills being things like training, education, marketing materials, and leads

With Mode, you still get all the tools and resources listed above which are necessary for a successful real estate career, plus so many other perks, including:

  • Modern Workspace Where You'll be Proud to Meet Your Clients
  • Opportunities for Community Engagement With Your Mode Team
  • An Intuitive Agent Portal Where All Your Tools are at Your Fingertips

Mode Realty Group strives to be different, and with our Mode VIBE, our support, and our dedication to our agents, there are so many reasons why Mode is the best real estate brokerage to work for! Maybe it's time to re-evaluate the traditional agent-broker split and move toward the flat fee structure that allows real estate agents to keep more of what they make while still feeling supported.  

Topics: Commission, Agent, Tiered Fee Structure

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