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I had a conversation today with an agent regarding Zip Realty. He asked if I knew how much the average Zip Realty agent makes on a real estate commission. I told him I wasn’t sure. The agent told me in most cases it’s between 21% – 25% of Zip Realty’s portion of the commission

For example on $400,000 sale based on 5% co-broke the commission is $20,000 of which Zip Realty would receive $10,000.00.

Off the top of the $10,000.00
20% goes to the buyer
10% goes to a “technology fee”
5% goes to “office expense fee”
3% a “misc fee”
* Other fees may also apply

Once all the deductions are taken out. Zip Realty receives 60% of the remaining balance and the agent receives 40%.

So on the above example the Zip Realty agent would walk away with $2,480.00. I understand why buyer’s use Zip Realty to obtain the 20% back on the commission, but why would an agent want to work on such small margins.

I must give Zip Realty a lot of credit. I wonder what would happen to me, if I started to charge my agents a 10% blog-posting fee?

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