Question Details

Chanita Teitz, Real Estate Pro in Kew Garden Hills, Qu...

If an agent lists a property and another agent in the same office sells the property, how is the commission

Asked by Chanita Teitz, Kew Garden Hills, Queens, NY Tue Jul 1, 2008

split? Does the listing agent get 50% of their 70% split and the selling agent 50% of their 70% split? What if the broker is the listing agent? What does the broker get?
CT

Help the community by answering this question:

Answers

11
Elvis: Well, I guess each office independantly negotiates and enters it specific to their area. Some handle it the way you obriously do, and others don't. Interesting to just seee how other offices work across the hnation. Have a Great day!
Tina Evans. Principal Broker
0 votes Thank Flag Link Sun Jul 6, 2008
As long as an agent enters what a buyer's agent, facilitator, or subagent will receive, then that's it.
~~~~~~~~~~~
As long as that amount doesn't "change" depending on who brings the buyer. If you charge your seller 1% if the buyer is within your office, but charge him 3% if the buyer's agent is an "outside" agent from another office, that gives your office an unfair advantage and "I personally don't feel THAT's fair".
0 votes Thank Flag Link Sun Jul 6, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Elvis: Ah,,thought it might be MLS specific.... I personally don't feel that's fair. As long as an agent enters what a buyer's agent, facilitator, or subagent will receive, then that's it. Whatever percentage you negotiate with your seller for yourself is between you and the seller. Just a thought,,,
Tina Evans, Principal Broker
0 votes Thank Flag Link Thu Jul 3, 2008
Elvis: I'm not sure you are fully accurate in your statement that if there is a differential in split is "has" to be listed as such in the MLS.
~~~~~~~~~~~
Tina, in our MLS in Northern Illinois (I admit, it may vary MLS to MLS, and region to region), if you're offering a "variable" commission as a co-op fee (ie: 2.5% to outside agencies, but 3% to an inside office... or 2.5% to outside agencies, but if you "dual agent" the deal, you'll cut the seller's fee by 1%) you have to notify any potential agent / agency that they may not be playing on a level playing field.
0 votes Thank Flag Link Thu Jul 3, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Hello, if an agent in your office lists a property and another agent in your office sells it the commission is split this way:

(For Example - If your office gets 50% of each transaction and the agents get the other 50%)
Total commission = $20,000
Broker commission = $10,000 (50%)
Selling Agent Commission - $5,000 (50% of $10,000)
Listing Agent Commission = $5,000 (other half of the $10,000)

EXAMPLE: If the Broker is the listing agent and the office has a 50/50% split
Total Commission = $20,000
Broker as Listing Agent, commission = $15,000 (75% of the commission)
Selling agent commission = $5,000 (25% of the commission)

I hope the visual examples were more helpful. Contact me anytime.
0 votes Thank Flag Link Thu Jul 3, 2008
Elvis: I'm not sure you are fully accurate in your statement that if there is a differential in split is "has" to be listed as such in the MLS. Commissions are negotiable. Be they between seller and agency OR between Broker/Agency and the independant agent. The Firm and the agent should have a contract agreement regarding terms of working under that firm's name and it should include how the commission is split between the firm and the agent. I am not aware of any MLS service that has a rule that mandates the inhouse commission split must be disclosed. If there is one, then please educate me as to which MLS service requires that. Thanks!

Tina Evans. Principal Broker
Web Reference: http://www.tinaevans.net
0 votes Thank Flag Link Wed Jul 2, 2008
The commission is split 50/50 then we pay our broker what ever our split with them is.
Ken
0 votes Thank Flag Link Wed Jul 2, 2008
What I want to know is what the broker should get. If he, the broker, gets a listing and an agent in his office sells it, does the broker get the listing agent side of the commission and pay his agent from the selling side? Or does the broker not take any commission for himself and gives both the listing and selling sides to the selling agent?
0 votes Thank Flag Link Wed Jul 2, 2008
than answer varies brokerage to brokerage. some offer higher splits if someone sells an in house listing.
~~~~~~~~~~
If they do, they have to advertise the fact (in the MLS) that they offer a 'preferential discount commission' to in-house deals, which might easily keep other offers from materializing.

If I, as an "outside of the office" Realtor, have a client who might be interested in that property, why would I recommend they bring an offer to that house, when I know that the listing agent can undercut our offer with an in-house agent?
0 votes Thank Flag Link Tue Jul 1, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
than answer varies brokerage to brokerage. some offer higher splits if someone sells an in house listing.
0 votes Thank Flag Link Tue Jul 1, 2008
The split would be handled the same as if the buyer's agent were in a different office. The co-brokerage amount is advertised in the MLS, and that's what's payable regardless of who sells it.

The percentage of that split would be based on the exclusive marketing agreement with the seller, and the brokerage firm's policies.
0 votes Thank Flag Link Tue Jul 1, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer