REAL Broker's Fees, Caps, and Commission Splits Fully Explained (2024)

Cloud based brokerages are becoming more and more popular among real estate agents because of the better commission splits, lower caps and lower fees compared to traditional franchise based brokerages. Because cloud brokerages have less overhead, less franchise fees, less office space and less equipment expenses. Those savings get passed to the agent or reinvested to provide more value.

We’ll break down all the caps, commission splits and fees that REAL Broker agents pay.

REAL Broker Commission Splits

What is REAL Broker’s commission split?

All agents at REAL Broker LLC have an 85/15 commission split. Agents keep 85% of their commission and pay 15% to REAL until they reach their cap. This split applies to both solo agents and those on teams, which is significantly lower than many franchise brokerages that take 30% or more until the cap is reached.

For producing agents who typically cap, favorable splits mean they can spread out their cap payments over the year instead of getting hit with it all at once when their cap resets. For newer, part-time or referral agents who may not cap, a more favorable split means they get to keep more of their earnings. For example, if an agent closes 4 deals a year, each with a $9,000 commission, they would pay REAL 15% of each commission, totaling $5,400 of the $12,000 cap. They are not required to pay the rest of the cap if they don’t reach it within the year.

REAL Broker’s commission structure is based on a percentage of the sale price of each transaction. According to Real Broker’s website, agents can earn up to 90% of their commissions, with the rest going to the brokerage.

REAL Broker Caps

What is REAL Broker’s cap?

REAL Broker has a $12,000 annual cap for solo agents, $6,000 cap for team agents and $4,000 cap for agents on mega teams. After they cap, agents keep 100% of their commissions minus a $285 transaction fee. The transaction fee drops to $129 after Elite Agent status.

The caps are the same across all cities and states. Unlike franchise brokerages where caps can vary widely, REAL Broker has uniform caps. For example, caps at different Keller Williams brokerages can range from $21,000 to $28,000. REAL Broker also doesn’t do “sweetheart deals” where certain agents get lower caps or additional benefits because of their relationship with the broker. Every agent at REAL pays the same cap, so it’s fair and transparent.

REAL Broker’s caps are designed to limit the amount of fees agents pay per year. The cap is $25,000 per year and agents can earn unlimited commissions after they hit the cap.

REAL Broker Fees

What are REAL Broker’s fees?

REAL Broker LLC charges four main fees:

One-time start-up fee: $249
Transaction fee after capping: $285, reduced to $129 after hitting Elite Agent status
BEOP fee: $30 per transaction (covers Broker Review, E&O, Insurance, and Processing)
Annual fee: $750, deducted from the first three transactions of the year at $250 each

Additionally, agents can opt for Chime (now Lofty) at a reduced rate of $40 per month.

There are no monthly fees, technology fees or hidden fees. Some might argue that dividing the $750 annual fee over 12 months is the same as a $62.50 monthly fee. But this annual structure has its advantages, especially for new agents. The annual fee is only paid when agents are producing and earning, so if a new agent doesn’t close a transaction for the first 6 months, they don’t have to pay a monthly fee. If no transactions are closed within the year, the annual fee is not owed at all, which isn’t the case with a monthly fee structure.

REAL Broker’s fees, caps and commission splits are fair and transparent and offer a big advantage over franchise based brokerages. The uniform caps across states, no “sweetheart deals” and no monthly fees make REAL Broker a great option for new and experienced agents. By offering good splits and lower fees, REAL Broker ensures agents keep more of their money and have a supportive and fair environment.

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