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What’s the best real estate agent commission split in NYC?

Posted by Best Agent Commission Split NYC on March 2, 2016
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Agents looking for the right brokerage to work with have always been focused on the best real estate agent commission split in NYC.

It’s no surprise that the traditional “Agent Centric” and “Broker Centric” models both fail to provide true value to agents.

the best real estate agent commission split in New York City

Essentially, they are telling agents good luck with that and please pay your broker half of what you make if you do end up getting one of your friends to work with you.

How the Broker Centric model works

This is the traditional brokerage model employed by the larger real estate firms with lots of “branding.”  When an agent joins a broker centric firm he’s given only that, “brand image,” for all its worth today.  It’s no surprise then that this model does not exactly provide the best real estate agent commission split in NYC.  A new real estate agent joining this type of brokerage model will be given the brand’s logo, pay for his own business card and then be expected to generate his own deals among the competition of over 30,000 other real estate agents in NYC.

The best real estate broker agent commission split in NYC
Common pitfalls of this model:
  • Low real estate commission split starting at 50% gross
  • Hidden desk fees, franchise fees, software fees etc.
  • Zero or extremely rare distribution of client leads
  • Extremely low commission splits of ~10% for “grunt work” on house clients
  • Agents expected to source and/or pay for all leads themselves
Advantages of this model:
  • Brand recognition
  • Access to brick and mortar office space

How the Agent Centric model works

This non-traditional brokerage model focuses on the agent as the client of the brokerage.  The best real estate agent commission split in NYC for this model is 100% in the favor of the agent.  However, be sure to read the fine print as most of these brokerages have hidden desk fees, transaction fees, insurance fees, software fees, franchise fees and so on.  While the net real estate commission split may still be higher than the traditional 50%, it is typically nowhere close to a true 100% real estate commission split.

Common pitfalls of this model:

  • Zero branding or leads generated by the brokerage

  • Zero value add to agent’s business

  • Parasitic brokerage business model based on miscellaneous fees paid by agent

  • Inaccessible management

  • Every man for himself culture

  • Agent is truly alone with no support

Advantages of this model:

  • Typically higher net real estate commission split

  • High degree of autonomy

  • Lower qualifications needed to join

How the Mont Sky Real Estate Partnership Model is Different

At Mont Sky Real Estate we believe in a different type of broker agent relationship. We are experts in lead generation and partner with you, our experts in the field. Our business model does not depend on the small, all-inclusive monthly fee we charge.  We only make money if our agents make money, and that means you closing on the leads we provide.

Advantages of the Mont Sky Real Estate Partnership Model

  • Buyer and seller client leads provided on demand

  • Low, all-inclusive monthly fee

  • No hidden transaction, desk, software, insurance or any other fees

  • Alignment of interests between broker and agent

  • Best in class tools and technology

  • World class broker, tech and legal support

We believe agents should not have to choose between the best real estate commission split in NYC or the brand of a traditional firm.

We are often surprised about how some agents are misled into thinking that there is somehow a safety net working for a larger, traditional real estate brokerage.  The truth is the brand name works primarily for the benefit of just that, the brand, not the agent.  The fact that the agent is associating with a brand only enhances the value of the brand, with superficial if any benefit to the agent.  Is there any difference with saying you work with Broker A vs Broker B?  It’s not exactly the same as announcing you work for Goldman Sachs vs a smaller bank.

The truth that we and every broker or agent in real estate must admit is that regardless of which firm you work at, there is no safety net anywhere.  There is no safety net at Broker A, B or Mont Sky Real Estate.  This is not a salaried job and you are not an employee.  You work for yourself and even though leads are provided to you at Mont Sky Real Estate, they remain leads if you don’t do everything you can to convert them into clients. Although we offer high real estate commission splits at Mont Sky Real Estate, 100% of zero is still zero.  You must give it your all no matter where you choose to work.

There is the same perceived issue of being able to attract exclusive listings only if you work at a larger firm. That is a myth perpetrated by those brokerages purely for their own benefit.  We like to prove our point by example.  Just look at the growing list of exclusive sale listings at Mont Sky Real Estate, one of the fastest growing real estate brokerages in New York City yet definitely not currently one of the 3 largest brokerages.  It is a shame that this myth is perpetrated because as we all know, the number of agents you have within a firm has absolutely nothing to do with your advertising reach.  All member brokerages are contractually obligated to disseminate their listings to the REBNY Listing Service (RLS).  Each firm will advertise on similar, 3rd party advertising platforms such as StreetEasy, Zillow, Trulia etc. It absolutely does not matter whether you have 10 agents or 10,000 if every agent at every firm is able to see and work on a listing now does it?

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