Why is Re/Max #1 in every market, city, state, country, and continent?
The 100% difference explained. Traditional real estate companies including all of the national brands and franchisees use a tied commission split business model. The agents and associate brokers have a contractual obligation to the company that they work for to SPLIT every commission dollar they earn from a closed sale until they reach a certain dollar volume level. Essentially the listing contract on your property belongs to the brokerage company and they have autonomous rights over the agency relationship. Often this precludes the listing agent from being creative with the commission dollars and does not always allow the seller to change their mind once an agreement has been put into effect. Once your property is listed the managing brokerage can dictate policy and believe me the traditional firms have lots and lots of policies… They often weigh in on advertising methods and content, web placements, even how and when commissions can be negotiated. With the traditional split program
