Real estate brokerage market in the us

Reference no: EM1374445

In the United States real estate brokerage industry, brokers employed by large brokerage companies have traditionally worked for a portion of the commissions they generate. That is, if a house sale generates a 6 percent commission split equally between the brokers for the two sides (standard in many markets in the United States), the broker on one side might personally pocket 1.5 percent with 1.5 percent going to the firm for which the broker works. In return for a share in the broker's commissions, the company provides the broker with an infrastructure, such as clerical support, phone services, and office space, and especially for new brokers, a base wage.

In comparison, RE/MAX, a national brokerage firm, permits its agents to keep 100 percent of the commissions they earn. The firm provides clerical services, phones, and the like, and charges its agents a fixed monthly fee for those services. RE/MAX is known for having the most aggressive agents in the business on average. If you want to find an aggressive, hard charging agent, going to RE/MAX is usually a safe bet.

Reference no: EM1374445

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