A flat fee broker keeps a flat fee, rather than a percentage, of each of your commission checks.
This is quite uncommon among brokerages.
Usually a brokerage will charge you a significant percentage of the overall commission - 25% on the lower end and up to 50% on the higher end. In addition to this, the broker will often have monthly fees they charge for office, equipment usage, supplies, etc.
Imagine you make $10,000 in commission on a deal. If the broker takes 25-50% ($2,500-$5,000), that’s a huge chunk of your earnings. Add to that any other monthly fees they charge.
On the other hand, if you find a flat fee broker, they may charge you $500 per transaction regardless of what you make. In the example above, if you made $10,000, they’d take $500 and you’d make $9,500! Wow! Quite a difference.
In this scenario you’d have to do between 2-4x the transactions with a traditional broker to make the same money you’d make with a flat fee broker.
Since you are doing this on the side to support your ministry, you probably won’t be pursuing the same volume of transactions a typical real estate agent would. That’s why you need to keep as much of your commission as possible.
Ok, so how do you find flat fee brokers? In some markets, they're definitely not easy to find. Most brokers obviously wouldn’t want to do this because they make less money.
Here’s what I’d recommend:
- Ask other agents in your area if they know of any flat fee brokers (or 100% Commission Brokerages)
- Google search for flat fee brokers in your area
- Ask the director of the local real estate association if they know of any flat fee brokers
- Google search for flat fee brokers in your state (sometimes your local market may not have one and you may need to join a brokerage that is state-wide)
Here are a few examples of flat fee brokers. Studying their websites will help you know what to look for in your state.
Texas Broker Sponsor - https://www.texasbrokersponsor.com/
Central Metro Realty - https://centralmetro.net/
*Note: If you’re in the Lubbock, Midland/Odessa, or Dallas/Fort Worth Texas markets, my wife and I own a flat fee brokerage serving Christian leaders & their spouses. You can contact us for more info at [email protected].