If you’re reading this, you’re likely in one of two places:
- You’re starting your real estate business and trying to figure out what’s fair
- You’re a seasoned agent wondering if your current split still makes sense.
Either way, this post was written for you.
We’re going to cut through the fluff. No vague promises. No outdated rules. Just a clear look at how real estate agent commission splits actually work in 2025:
- What’s standard
- What’s negotiable
- What models successful agents are choosing instead.
- Is 70/30 still reasonable?
By the end of this, you’ll know exactly what to look for, what to avoid, and how to build a business that puts more money in your pocket, without giving up your freedom.
Let’s start with the basics.
What Is a Real Estate Commission Split?
A commission split is how a real estate agent and their broker divide the money earned from a transaction. It’s one of the first things new agents learn, and one of the last they ever really question. But you should.
Traditionally, when a home sells, there’s a total commission, usually around 5% to 6% of the sale price. That gets split between the listing brokerage and the buyer’s brokerage. So, if we’re talking about a $600,000 home, you’re looking at $36,000 in total commission. Each side typically gets half, or $18,000.
But it doesn’t stop there.
That $18,000 gets split again, this time between the broker and the agent. And how that second split shakes out depends entirely on your agreement. Maybe it’s 70/30, maybe it’s 50/50, or maybe you’re on a flat-fee model and keep it all.
Here’s where the game changed in 2024. A nationwide legal settlement restructured how commissions are handled.
Most notably, buyer agents are no longer paid by the seller or the listing broker. Now, buyers negotiate and pay their own agent directly, often by rolling the fee into the closing costs via seller concessions.
This shift puts pressure on agents to justify their fees and forces many to re-evaluate what they’re paying their broker, and why. And honestly, it’s long overdue.
How Much Do Brokers Take from Agents?
The short answer? It depends. But let’s break it down.
The most common commission splits you’ll see today are:
- 50/50 – You split evenly with your broker.
- 60/40 or 70/30 – You keep the larger portion.
- 80/20 or 90/10 – Reserved for top producers or agents paying monthly desk/tech fees.
- 100% commission – You keep the full amount and pay your broker a flat fee per deal.
Let’s look at real numbers. On a $1 million transaction with a 6% commission, that’s $60,000 total. Half goes to the listing brokerage, half to the buyer’s brokerage: $30,000 each.
If you’re the buyer’s agent and your brokerage takes 30%, you walk away with $21,000.
If you’re on a flat-fee model and your broker takes a fixed $100 per transaction, you walk with $29,900.
That’s an $8,900 difference on one deal. Multiply that across a year, and it becomes real money.
Many brokerages now use tiered splits or caps. For example, you may start at 70/30 until you’ve paid $18,000 to your broker in a calendar year, after which you jump to 100%. While this sounds appealing, the reality is that it creates unpredictable income and often front-loads your costs when you’re trying to build momentum.
And here’s the part most brokers won’t advertise: Every commission split is negotiable.
You’re not stuck. You can (and should) ask questions, especially if you’re generating your own leads, building your own brand, and not using the tools you’re paying for.
Is a 70/30 Commission Split Fair?
This is one of the most searched questions in real estate right now, and it’s the one I hear from agents all the time.
Let’s be blunt: 70/30 might’ve been fair ten years ago. In 2025, it depends on what you’re getting in return.
If your broker is feeding you high-converting leads, providing real mentorship, handling your paperwork, and actively helping you grow your business, then yes, 70/30 might be a fair exchange. Maybe even 60/40, depending on how involved they are.
But here’s what I’m seeing more of: agents sourcing their own clients, paying for their own tools, and still handing over 30%, or more, for a logo, some compliance support, and access to a backend system they barely use.
If that’s your situation, 70/30 isn’t just outdated. It’s lopsided.
You also have options. Models like 90/10 with caps, flat-fee brokerages, and 100% commission structures now exist in every market. At Realty Hub, for example, our agents pay $100 a year and $100 per closing. That’s it. They keep the rest because, frankly, they earned it.
Hidden Fees to Watch For (That Cut Into Your Split)
Let’s say you’ve accepted a 70/30 split. Fair enough, maybe you’re getting value for that 30%. But what happens when you see your commission check… and it’s lighter than expected?
This is where the industry quietly stacks the deck against agents.
1. Franchise Fees
These are the silent tax of big-name brokerages. National brands often skim an additional 6% to 8% off the top of every deal. That’s not part of your split, that’s extra. One agent told me they lost over $3,000 on a single deal because of a franchise fee they didn’t know was buried in the fine print.
2. Lead and Referral Fees
Brokers who “hand you a lead” often charge 20% to 40% of the commission on top of your existing split. Even if the lead came from a mass email list or a recycled web form, you’re still paying. And if you sourced the lead yourself? Some brokers still expect full fees, which makes no sense.
3. Tech, Desk, and Coordination Charges
Desk fees. Monthly “tech access” charges. Transaction coordination fees that appear just because someone emailed a checklist. It all adds up. I’ve seen agents pay $100/month for tools they never use and another $300 per transaction just to close with the company’s system.
So what started as a 70/30 split quickly becomes something more like 60/40 or worse, once you factor in all the hidden charges.
That’s why transparency isn’t just nice, it’s non-negotiable. If your broker can’t tell you exactly what you’ll pay before you close a deal, you’re not running a business. You’re gambling with every transaction.
Flat-Fee vs. Split-Based Brokerages
This is where the model starts to matter.
If you’ve ever asked, “What else is out there besides 70/30?”, flat-fee brokerages are your answer.
Flat-fee brokerages break away from the idea that your earnings should be proportional to what your broker thinks they’re worth. Instead, they offer predictability, simplicity, and most of all, freedom.
Who is this model built for?
- Part-time agents who don’t want their commission stripped after a few annual deals.
- Experienced agents who already generate their own business and don’t need constant oversight.
- Investor-agents and flippers who want to keep their license active for their own transactions.
- Self-starters who value autonomy over hand-holding.
Flat-fee doesn’t mean no structure. It means you set the structure, and your brokerage exists to support it, not control it.
Tips to Negotiate a Better Commission Split
If you’re not ready to leave your current brokerage, or just want to get what you’re worth, here’s how to have the conversation.
1. Time It Right
Negotiations are best done after you’ve proven your value. If you’ve hit a production milestone, landed a few solid closings, or brought in leads from your own network, that’s leverage. Use it.
2. Lead with Value
Go in with data:
- How many closings have you handled in the past 6–12 months?
- What’s your average commission?
- Are you using your own CRM, lead tools, or marketing resources?
Make the case that your business is self-sustaining, and that you’re not a cost center for the brokerage.
3. Ask the Right Questions
Don’t just ask for a better split. Ask:
- “Is there a cap on what I’ll pay each year?”
- “Do I qualify for a tiered model?”
- “Can I move to 90/10 after hitting a production goal?”
- “Can we renegotiate mid-year if I exceed expectations?”
Yes, you can. And you should.
If your broker is rigid or dismissive, ask yourself: what’s keeping you there? The brand? The perceived prestige? Because if it’s not adding dollars to your business, it’s likely costing you.
At Realty Hub, we’ve built our entire model around agents who asked for a better deal and weren’t getting it. They were done with excuses. Ready for clarity. And unwilling to give away another 30% for nothing in return.
That’s not just fair. That’s smart business.
What Should You Get In Return for Giving a Split?
I’ve said it before, and I’ll say it again: if you’re giving up 30% to 50% of your commission, you better be getting something substantial in return.
Here’s what you should expect at a minimum if you’re giving up a chunk of every deal:
1. Leads
Not just cold lists. Actual, qualified opportunities that are being nurtured and handed off with support. If you’re sourcing all your own business and still giving away a big percentage, that’s a red flag.
2. Technology
Your split should be buying you a suite of tools:
- A functioning CRM
- A customizable website
- Email automation or marketing software
- Open house tools and signage templates
If these aren’t included, or if you’re paying for them separately, ask yourself why.
3. Compliance and Legal Help
You need someone reviewing your files, helping you navigate state rules, and being accessible when something hits the fan. At Realty Hub, this is non-negotiable. Agents expect broker access, and they get it, without paying a percentage.
4. Broker Access That’s Real
You shouldn’t have to wait 48 hours to hear back from a managing broker. You shouldn’t be routed through a chatbot. If your questions go unanswered, or worse, unacknowledged, that’s not a brokerage. It’s a toll booth.
So here’s the bottom line: If you’re paying like a team member, you should be treated like one, with shared wins, real resources, and accountability from the top down.
Agent Lifestyle: What Works Best for You?
Let’s stop pretending all agents want the same thing. Some want a team. Others want total independence. Some need daily mentorship. Others want to work quietly in the background while they build a portfolio.
And that’s okay. The key is finding a brokerage that adapts to your lifestyle, not the other way around.
Are you full-time or part-time?
Most brokers design their models for one type of agent: the full-time grinder. But the reality is, many successful agents close 3–5 deals a year and still bring in solid income, especially if they’re investors or referral-based.
If you’re part-time and still paying 30% splits, you’re subsidizing someone else’s overhead.
Common Agent Questions About Commission Splits
Let’s get into the real questions agents ask, because these don’t come from hypotheticals. They come from conversations we’ve had with hundreds of agents, many of whom joined Realty Hub after getting burned.
What’s a fair split if I find my own lead?
If you’re sourcing your own business, managing the transaction, and closing without help, a 70/30, or worse, starts to look unfair fast. At minimum, you should be negotiating down to 90/10 or switching to a flat-fee model.
Do 100% commission brokerages offer real support?
Yes, if they’re structured right. At Realty Hub, we provide legal compliance, document review, broker access, and E&O insurance. What we don’t do is charge for bells and whistles agents don’t use. Support should mean service, not overspending.
Can I succeed part-time with a flat-fee model?
Absolutely. In fact, that’s where flat-fee models shine. If you close a few deals per year, why give up thousands in commission just to keep your license active? Our model is built for agents who want low overhead, high return.
Which brokerages don’t charge franchise fees?
Look for independent or virtual brokerages like Realty Hub. Franchise brands often charge 6%–8% on top of your split, and that’s before marketing or desk fees. We don’t believe in tacking on fees just to carry a name.
Should I leave my brokerage over a bad split?
If you’ve asked questions and the answers don’t add up, if you’re paying more than you’re getting, or if your broker isn’t helping you grow, it may be time. You don’t need to jump without a plan, but you do need to do the math.
What Commission Split Makes the Most Sense for You?
Every agent wants to earn more, but not every agent needs the same path to get there. So let’s break this down:
Traditional Split Models (e.g., 70/30, 80/20)
Best for:
- New agents who need hand-holding
- Those receiving consistent high-quality leads
- Team members who benefit from pooled resources
Watch out for:
- Hidden fees
- Lead/referral markups
- Lack of transparency
Tiered Split Models with Caps
Best for:
- Full-time agents with predictable volume
- Those planning to scale within one firm
Watch out for:
- High caps ($18k–$25k+ per year)
- Mid-year resets or complex payout systems
Flat-Fee Brokerages (e.g., Realty Hub)
Best for:
- Part-time, independent, or investor agents
- Experienced agents who generate their own business
- Anyone tired of overpaying for underused “support”
What you get:
- Clear cost structure
- Full commission control
- Freedom to work how and where you want
Not sure where you fit? Ask yourself:
- Do I bring in most of my own clients?
- Am I paying for tools, space, or leads I don’t use?
- Do I trust my broker is adding value, or just taking a cut?
If you’re answering “yes” to the first two and “no” to the last, then you’re ready for a new model.
Want Out of the Split Game?
If you’ve made it this far, you’re not just curious about commission splits. You’re trying to figure out whether the deal you’ve got now is actually working in your favor, or quietly holding you back.
Maybe you’ve run the numbers and realized how much you’re handing over to your broker.
Maybe you’ve asked for better support, and gotten silence.
Maybe you’re ready for something that respects your autonomy instead of billing you for it.
Here’s how Realty Hub solves that problem.
What You Get with Realty Hub:
- Keep 100% of your commission: You pay just $100 a year and $100 per transaction. That’s it.
- Full access to E&O, compliance support, and real broker access: Not canned emails. Not sales scripts. Real answers when it counts.
- No franchise fees, desk fees, or forced tech bundles: You’re in control. Use your own systems, or don’t. We won’t charge you either way.
Here’s What Life Looks Like on the Other Side
You keep what you earn. You run your business how you want. You stop waiting for permission to grow. So if you’re ready to stop splitting your commission and start building on your own terms, we’re ready to help you do it.