eXp Realty Commission Split And Fees (In-Depth Guide) In 2022

eXp Realty Commission Split And Fees (In-Depth Guide) In 2022

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Are you interested in learning more about the eXp Realty commission split and other costs of being an eXp Realty agent, broker, or team leader?

In this piece, I go through all of the costs and benefits of joining eXp Realty in detail.

This article details the commission split and fees that I and every other eXp representative pay to the company.

 

Everything Is Equal

The first thing to notice about eXp Realty is that all agents receive the same commission split. Unlike many other real estate brokerages, no agents obtain exclusive offers. Regardless of tenure, transaction volume, or other factors, all eXp Realty agents pay the same commission split and costs.

This fairness exemplifies eXp Realty's core value of transparency and guarantees that all agents have an equal chance at success.

 

Splitting The eXp Realty Commission

At eXp Realty, all agents receive an 80/20 commission split. The total amount of gross commission paid into the company is capped at $16,000. A real estate agent who earns $80,000 in gross commissions in a year will pay eXp Realty 20% of that amount.

This brings the total to $16,000. 80% of $80,000 is 20%. Once an agent exceeds their commission ceiling, they will get 100% of their commission for the rest of the year, minus a capped transaction fee, risk management cost, and broker review fee.

 

Revenue Split

When discussing eXp Realty's commission split, one thing to keep in mind is revenue sharing. Revenue sharing is a way for real estate agents to supplement their income by assisting in the recruitment of new agents to the brokerage.

Revenue sharing is paid out of eXp Realty's 20 percent commission split and does not cost agents anything extra. Every month, eXp Realty pays out half of the 20% commission to agents (the other half goes to eXp Realty's expenses and profit).

Check out my whole eXp Realty revenue share review for additional information.

 

Fees For eXp Realty

Monthly and transaction fees are charged by eXp Realty. Below, I'll go over each one in further depth.

There are no desk fees, royalty fees, or franchise fees at eXp Realty. Additionally, there are no production or attraction minimums. At eXp Realty, you can keep your license as long as you pay your $85 monthly fee and follow all state licensing requirements.

 

Monthly Fees For eXp Realty

A monthly fee of $85 is charged by eXp Realty. This cloud brokerage cost includes access to kvCORE, Skyslope, Marketing Center, Workplace, as well as comprehensive training and support.

eXp Realty's lead generating and website solution for agents is called kvCORE. Access to this technology outside of eXp costs more than $500 per month. This alone is worth the $85 per month. Check out my Complete kvCORE Guide for more information.

 

Fees For eXp Realty Transactions

After a real estate agent reaches 100%, they just have to pay $250 per transaction. After capping, if an agent pays $5000 in transaction fees, they will be charged $75 per transaction for the duration of the anniversary year.

Let's imagine you sell 60 properties in a year at a commission rate of $6,000 per transaction. Your eXp Realty commission split would look like this:

  • The first 14 transactions would be split 80/20 with no transaction fee.
  • 15-34 transactions would be split 100/0 with a $250 transaction charge.

35-60 transactions would be split 100/0 with a $75 transaction charge.

To clarify, you would reach your limit on your 14th transaction ($6,000 multiplied by 14 transactions = $84,000). Transactions 15 through 34 would cost $250 each, totaling $5,000. The price for transactions 35-60 would be $75 per transaction.

 

Fee For Risk Management (Errors & Omissions)

Errors and omissions are terms that many agents are familiar with. This is referred to as the risk management fee at eXp Realty. The risk management charge varies by country, but it is $40 per transaction in the United States.

Once a real estate agent has paid $500 in risk management fees for the year, the agent is no longer responsible for risk management fees for the rest of the anniversary year.

 

Fee For Broker Review

A $25 per transaction broker review fee is paid by all US agents. There is no cap on this price. This cost is $29 per transaction for Canadian agents.

 

Example Of Commission Split And Fees

In the previous scenario, an agent completes 60 transactions. For the year, their overall eXp Realty Commission Split would be:

  • $16,000 – Cap
  • Transaction Fees: $5,000 – $250
  • $75 Transaction Fees – $1,875
  • Risk Management Fees: $500
  • Broker Review Fees: $1,500
  • Total eXp Realty Commission Split Fees: $24,875

Would you wish to recoup $16,000 of your fees? Read on to learn more about eXp Realty's ICON agent program and how you can join.

 

Mentor Fees At eXp Realty

eXp Realty's mentor program will enroll agents who have completed less than three transactions in their current market. In the mentor program, agents are assigned a trained mentor who will assist them with their first three transactions at eXp Realty.

On the first three transactions, mentees pay an additional 20% split that goes to the mentor and mentor program (which consists of additional training modules for the mentee).

The mentee graduates from the mentor program after closing three transactions with eXp Realty and is no longer subject to the additional 20% commission share.

 

Personal Deals At eXp Realty

Agents at eXp Realty can perform three personal transactions per year without paying the 20% eXp Realty commission.

For the personal deal, agents are only liable for paying a $250 transaction charge, $40 risk management fee, and $25 broker review fee.

Only deals in which the eXp Realty representative is physically on the contract are considered personal transactions.

 

Fees For eXp Realty Sellers

Clients are not charged any additional costs by eXp Realty. Agents can set their own commission rate as well as any additional costs they charge their clients. However, eXp Realty halves whatever rate and fees are paid to the client at the standard commission split.

The minimum transaction split to eXp Realty is $500 if an agent chooses to decrease their commission rate and has not achieved their commission ceiling. As a result, an agent can decrease their commission to zero for the customer, but they will be liable for paying eXp Realty $500 plus the broker review and risk management fee for that transaction.

 

Agent Program Of ICON

We can earn our entire $16,000 maximum back each year as eXp Realty agents in the form of eXp Realty stock. Based on your eXp Realty production, there are two ways to qualify for the ICON Agent Program. Please remember that you must choose between the two options. In addition, you must meet the cultural criterion outlined below.

 

Plus $5,000 In Transaction Fees For Capped Status

"$16,000 in company cap + capped status transactions in the same anniversary year resulting in capped status transaction costs of not less than $5,000" is the first method.

Selling 34 deals with an average commission income of $6,000 per transaction is an example of this. You'd set a limit of 14 agreements. For deals 15-34, you'd pay $250 per transaction, totaling $5000 in capped status transaction fees. As a result, if you satisfied eXp Realty's cultural goals outlined below, you'd be eligible for ICON agent status.

 

ICON Qualifying Fee + $500,000 Annual Gross Commission Income

The second way to become an ICON agent is to earn $500,000 in annual gross commissions with a minimum of 10 closed transactions and pay a "ICON Qualifying Fee." This fee is $5,000 less than the capped transaction fees paid in the same anniversary year.

For instance, suppose you sold ten properties and earned $50,000 in commissions on each transaction. Your second transaction would be your cap. Then, on your following eight transactions totaling $2,000, you incur a $250 transaction charge. Finally, you'll need $3,000 to cover the "ICON Qualifying Fee" in order to qualify for ICON Agent status for that year. The "ICON Qualifying Fee" is an optional fee that is only necessary if you want to be an ICON agent.

 

Requirement Of Culture

The final step in becoming an ICON agent is to "demonstrate business culture by volunteering to teach a class, serve on a panel, or serve on a committee." Additionally, an ICON agent must be eager to promote eXp Realty in their community."

That's it! You'll get $8,000 in publicly traded eXp World Holdings (EXPI) common shares if you meet the above requirements. After three years, the stock vests.

After one year, provided your cultural requirements have been met and verified, you will receive an additional $4,000 bonus.

After attending both of the yearly eXp Realty events, ICON agents win the final $4,000 in stock awards.

After each corporate event (The eXp Shareholder Summit and EXPCON), the corporation issues $2,000 with no vesting period, for a total of $4,000 from attending the company events.

 

Finishing Touches

Finally, as compared to the bulk of brokerages, the eXp Realty Commission Split is extremely generous. eXp Realty is quite unique, especially when considering the ICON Agent Program. When you combine this with all of the resources and training that eXp Realty offers real estate agents, you have a fantastic opportunity to advance your real estate career.

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