Commission Splits With a Twist

Layered splits reward careful reading. Sale $420,000, total commission 5.5% = $23,100. Co-brokerage 60/40 listing/selling: listing side $13,860, selling side $9,240. The selling agent on a 70/30 split with their broker earns $9,240 × 0.70 = $6,468. Twists: a referral fee (25% of the selling SIDE) comes off the top of that side before the broker/agent split; a transaction fee may come off the agent's share; 100%-commission shops charge flat desk fees instead. Reverse question: an agent earned $6,468 on a 70% split of a 40% side at 5.5% — price = $6,468 ÷ 0.7 ÷ 0.4 ÷ 0.055 = $420,000.