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Patrick Coul…, Real Estate Pro in Ellicott City, MD

How common is it to have to split your "agent bonus" with your broker?

Asked by Patrick Coulter, Ellicott City, MD Thu Oct 7, 2010

I understand the how and why, but just want to know how common it is to have to split your agent bonus with your broker. Thanks in advance for any info! :)

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Not just common, but I believe required. Any payment must go through your broker, and you know the deal from there....

For this reason among many, I say to sellers, keep the incentives directed towards the buyers - price reductions will sell more homes and ultimately put more money in your pocket.

Jeanne Feenick
Unwavering Commtiment to Service
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1 vote Thank Flag Link Thu Oct 7, 2010
Hello Patrick,

First be sure to disclose, to your broker,that a bonus is coming.

They all seem to have their own rules, fortunately I am now with a 100% office and do not have to think about that,. I have in the past had my license with other companies who have taken a %, some take a flat rate over a certain dollar. Best suggestion, be sure to read the companies independent contractor agreement before you sign on.
0 votes Thank Flag Link Sun Apr 3, 2011
Patrick - please excuse my previous response/vent (re: 100% commission).
Regarding a broker split of an agent bonus... if the agent bonus you're referring to is a part of the total compensation offered by a seller for a specific transaction, that is normally split with the broker. I've never seen it treated as anything but part of total compensation and as Gerard accurately states, many brokerages dictate in their agent contracts that any and all $$$ received from the seller is under the umbrella of commissions, regardless of how the incentive is earned.
0 votes Thank Flag Link Sun Apr 3, 2011
Kaneva - I'm going to upchuck if I see another question or answer that includes "100% Commission!!! NO Split! Only $x Fee per Successful Transactions". Do you think the world is stupid? Paying $500 from a commission IS A SPLIT.
What a scam.
0 votes Thank Flag Link Sun Apr 3, 2011
I'm not only give my agents a full bonus I'm also give my agents a full commisions 100% !!! NO split!
Only $500 Fee per Successful Transactions
0 votes Thank Flag Link Sun Apr 3, 2011
As most have said in the answers below - agent income IS commission and commissions are subject to split with broker per whatever deal you have with the broker - HOWEVER- I believe that agent bonus deals are a bad idea PERIOD. The liability for the agent is just to obvious, in terms of 'buyer's best interests' ( "Did he/she show us everything available, or just properties that didn't compare well to the one with the bonus?") and potential negative impact on the agent's professionalism " We were never sure that she helped us get the best possible deal on the place and wondered if she was less aggressive on our behalf , because she has a vested interest in successfully closing THIS bonus sale over another sans bonus."
When I represent buyers, an agent bonus is nothing more than a discount I hand over to my buyers. As a listing agent, if selllers mention an agent bonus to help 'push' the property, I try to help them find direct to buyer incentives instead: a decorating allowance, additional seller subsidy, whatever...I'm just sayin'... Rebecca Reeves
0 votes Thank Flag Link Thu Oct 7, 2010
It is a bonus! I would immediately fire any company who went after it.
0 votes Thank Flag Link Thu Oct 7, 2010
Coldwell Banker and Wechert treat it as commission at the agreed upon agent split......

Good Luck!

If you like the answer - please consider making it a "Best Answer" !

Gerard Dunn
Associate Broker
Licensed in Maryland, Virginia and Washington, D.C.

Assisting Homebuyer's and Seller's for 28 years
0 votes Thank Flag Link Thu Oct 7, 2010
Great question, and one many agents don't think about when it comes time to get the check. Most brokers consider all compensation earned when completeing a transaction to be subject to the split. If there are some that let the agent keep the entire bonus, good for them in doing the right thing.
0 votes Thank Flag Link Thu Oct 7, 2010
Agent bonus goes to agent. Broker bonus is split between Broker of record, and agent. When I list w/ a bonus..It always is an agent it all goes to the agent. Fyi.

Becky Zivkovic
Bel Air, MD.
0 votes Thank Flag Link Thu Oct 7, 2010
Hi Patrick,

Your split usually applies to all monies you earn. Bonus or not. There are lots of brokerages out there that would love to have a hardworker on their team. If you have these questions it might be time to start shopping!
0 votes Thank Flag Link Thu Oct 7, 2010
My broker is Champion Realty, Inc. 100% of Bonus is paid directly to the agent. Great company!!! I do a lot of business in Columbia. You may want to look at Champion.
0 votes Thank Flag Link Thu Oct 7, 2010
Hi Patrick. Never. I'm at Realty Associates. Join a 100% broker, it's the only place I've ever worked, here's why:……

GOOD LUCK and keep the bonus, you deserve it!!!

Scott Miller, Realty Associates, Boca Raton, FL
0 votes Thank Flag Link Thu Oct 7, 2010
I work for a 100% commission company (Real Estate Professionals, Inc.) and, as with commission, the agent gets 100% of any bonus involved. I, too, worked for the Big Red Sign when I started (only I think it was brown then) and it's 100% better where I am now.
0 votes Thank Flag Link Thu Oct 7, 2010
When I was with the big Red sign...they had changed their policy that if you got a bonus and the side was below 3%, your bonus was treated like regular commission up to the 3% threshold, and then you got the rest 100%.
0 votes Thank Flag Link Thu Oct 7, 2010
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