How Brokers Can Deal With Agents Who Ask For Higher Splits

In a traditional real estate broker/agent relationship, the broker splits each commission with each agent he works with 50/50. Since each has something the other needs -- the broker the resources and support, the agent the business, this seems like an equitable arrangement in most cases. However, there are some agents who insist on a higher split, perhaps because they think their services are in higher demand than most agents. There are ways that a broker can handle such a situation.

Talk to the Agent

Brokers should interview their agents carefully, especially if they suspect one will ask for a higher split than normal down the road. As a broker, you should know what the agent can offer you and be able to offer the agent value as well. You may be able to convince the agent that the value you offer is worth more than a higher split. Or you may decide that the agent’s value really is worth a slightly bigger cut.

Consider a 100 Percent Commission Deal

If an agent does not relish the idea of giving up a chunk of his commission, offer him a flat fee. The agent pays a regular monthly office fee to the broker and keeps all of his commission. This way, the broker is assured of income from the agent and the agent has no restrictions on his earning potential.

Get a New Agent

A broker is not obligated to take on every agent that walks through the door. There are plenty of agents who will relish the opportunity to get involved with a quality broker for an even split. If this particular agent is not one of those, don’t be afraid to move on. There’s no reason to cave into an agent’s split demands unless you are convinced you are getting more value from this agent than you would from one who would take an even split.