The agency model has several baked-in fees that sometimes convolute what an agent and a commission-earning broker takes in when the ink dries on a deal. This study breaks down several possible fees that could take a bite out of an agent’s bottom line.
The average referral fee payout is 25% of the commission. Likewise, the average referral at a national franchise is slightly higher than an independent firm, 26% versus 24%. There is a modest difference between part-timers (22%) versus full-timers (25%), and between men (23%) versus women (25%).
One in five (20%) respondents are not paying any fees to their brokers. Nearly one-third (31%) of respondents in the Northeast do not pay fees, whereas those in the West are more likely to pay fees, with only 14% reporting they do not. Those new to the industry are also more likely to pay fees, with only 15% saying they don’t compared to 20% of those with over 15 years of experience.
Among those paying fees to a broker, they are paying, on average, 2.1 different types of fees, with transaction fees (53%), administration fees (44%) and technology fees (40%) being most prevalent.
One-fifth of respondents indicate that they pay marketing and advertising fees as well as desk fees. Fifteen percent say they pay “other” fees that could include signage, lockboxes and other broker-provided resources.
