Webster’s for Realtors
OK, so they may sound like snowboarding manuevers.
To Realtors, however, “commission splits” and “cross-over points” are two of the most important terms in the industry.
So, what are they?
A Realtor’s commission split is how much of each paycheck they share with their broker.
Depending on the Broker and the individual Realtor’s arrangement, Realtors can pocket — net of any unpaid expenses — anywhere from 50% to more than 95% of each commission check (with the Broker getting the balance).
At most Brokers that offer commission splits (vs. charging Realtors a flat, monthly fee), the split typically begins at something like 50-50, then jumps up dramatically once the Realtor hits a threshold level of sales.
That’s called the Realtor’s “crossover point.”
Alas, like Cinderella, at the end of each Realtor’s fiscal year, their annual sales re-set to zero, and they must work to reach their cross-over number all over again.
P.S.: So, what exactly do Realtors and their brokers split?
The commission offered to the Buyer’s agent is called the “pay-out”; what the Seller’s agent splits with their broker is called the “list side” commission.
