Are you curious about the eXp Realty commission split and other fees associated with becoming an eXp realty agent, broker, or team leader?
In this post, I share in-depth all the costs and opportunities associated with joining eXp Realty.
The commission split and fees I discuss in this article are exactly what I and every other eXp agent pay to the company.
If you would rather watch or listen to this content, check out the video or podcast below!
All Things Equal
The first thing to note about eXp Realty is that all agent’s commission splits are the same across the board. No agents receive exclusive deals, unlike many other real estate brokerages. All agents at eXp Realty pay the same commission split and fees regardless of tenure, transaction volume, etc.
This equal treatment embodies eXp Realty’s core value of transparency and ensures that all agents have the same opportunity to succeed.
eXp Realty Commission Split
All agents at eXp Realty receive an 80/20 commission split. This split caps at $16,000 gross commission paid into the company. When a real estate agent earns $80,000 in gross commissions in a single year, they will pay 20 percent of that to eXp Realty.
That is a total of $16,000. $80,000 x 20 percent. Once an agent reaches their commission cap, that agent will receive 100 percent of their commission minus a capped transaction fee, risk management fee, and a broker review fee for the remainder of the year.
One thing to point out when talking about eXp Realty’s commission split is revenue share. Revenue share is an opportunity for real estate agents to earn an additional income stream for helping to bring on other agents into the brokerage.
Revenue sharing is paid from eXp Realty’s side of the commission split, the 20 percent, and doesn’t cost agents anything extra. eXp Realty pays out 50 percent of the 20 percent every month to agents (the other 50 percent goes to paying eXp Realty’s overhead and profit).
For more information, check out my full in-depth review of eXp Realty revenue share.
eXp Realty Fees
eXp Realty fees consist of monthly and transaction fees. I’ll cover each in more detail below.
eXp Realty does not charge a desk fee, royalty fee, or franchise fee. Also, there are no minimum production or attraction requirements. So long as you stay current on your $85 monthly fee and all state licensing requirements you can remain licensed at eXp Realty.
eXp Realty Monthly Fees
eXp Realty charges an $85 monthly fee. This cloud brokerage fee covers the use of kvCORE, Skyslope, Marketing Center, Workplace, and complete access to training and support.
kvCORE is eXp Realty’s lead generation and website solution for agents. Outside of eXp, access to this system runs over $500 per month. This alone makes the $85 per month worth it. For more information, check out my Complete kvCORE Guide.
eXp Realty Transaction Fees
After a real estate agent caps, they go to 100 percent and only pay $250 per transaction. If an agent pays in $5000 in transaction fees after capping, they will move to a $75 per transaction fee for the remainder of the anniversary year.
For example, let’s say you sell 60 homes in one year with an average commission amount of $6,000 per transaction. Here is how your eXp Realty commission split would work out:
- Transactions 1-14 would be on an 80/20 split with NO transaction fee.
- Transactions 15-34 would be on a 100/0 split with a $250 transaction fee.
Transactions 35-60 would be on a 100/0 split with a $75 transaction fee.
To explain, you would cap on your 14th transaction ($6,000 x 14 transactions = $84,000). Transactions 15-34 would all be at $250/per transaction totaling $5,000. Transactions 35-60 would be at $75 per transaction.
Risk Management Fee (Errors & Omissions)
Many agents are familiar with the term errors and omissions. At eXp Realty , we call this the risk management fee. The risk management fee varies by country, but in the US, it is $40 per transaction.
Once a real estate agent hits $500 in risk management fees paid for the year, the agent will no longer pay risk management fees for the remainder of the anniversary year.
Broker Review Fee
All US agents pay a $25 per transaction broker review fee. This fee does not cap. For agents in Canada, this fee is $29 per transaction.
Commission Split and Fees Example
In the example above where an agent does 60 transactions. Their total eXp Realty Commission Split paid for the year would equal:
- $16,000 – Cap
- $5,000 – $250 Transaction Fees
- $1,875 – $75 Transaction Fees
- $500 – Risk Management Fees
- $1,500 – Broker Review Fees
- $24,875 – Total eXp Realty Commission Split Fees
How would you like to earn $16,000 of those fees back? Read below about the ICON agent program at eXp Realty and see how you can do just that.
eXp Realty Mentor Fees
Agents who’ve completed less than three transactions in their current market will be enrolled in the eXp Realty’s mentor program. Agents in the mentor program are assigned a certified mentor who will help assist with the agent’s first three transactions at eXp Realty.
Mentees pay an additional 20 percent split on these first three transactions which pays the mentor and mentor program (which consists of additional training modules for the mentee).
Once the mentee closes three transactions with eXp Realty, they graduate from the mentor program and are not subject to the additional 20 percent commission split.
eXp Realty Personal Deals
At eXp Realty, agents can complete three personal transactions per year without paying the 20 percent split to eXp Realty.
Agents are only responsible to pay a $250 transaction fee, $40 risk management fee, and $25 broker review fee for the personal deal.
A personal transaction consists of only the deals for which the eXp Realty agent is personally on the contract.
eXp Realty Seller Fees
eXp Realty does not charge any additional fees to clients. Agents can determine their commission rate and any additional fees to their clients. However, whatever rate and fees that are charged to the client are then split with eXp Realty at the typical commission split.
If an agent wishes to discount their commission rate and that agent has not reached their commission cap, the minimum transaction split to eXp Realty is $500. Therefore, an agent can reduce their commission completely to $0 to the client but the agent would then be responsible to pay eXp Realty $500 for that transaction, plus the broker review and risk management fee.
ICON Agent Program
As agents at eXp Realty, we can earn our entire $16,000 cap back each year in the form of eXp Realty stock. There are two ways you can qualify for the ICON Agent Program, based on your production at eXp Realty. Please note that it’s one or the other, not both. Additionally, you need to satisfy the cultural requirement explained below.
Cap Plus $5,000 in Capped Status Transaction Fees
The first way is “$16,000 paid in company cap plus capped status transactions in the same anniversary year resulting in capped status transaction fees of not less than $5,000.”
An example of this would be selling 34 transactions at an average commission income of $6,000 per transaction. You would cap at 14 deals. You would pay $250 per transaction for deals 15-34, equaling $5000 in capped status transaction fees. Therefore, if you met the cultural goals of eXp Realty detailed below, you’d qualify for ICON agent Status.
$500,000 Annual Gross Commission Income Plus ICON Qualifying Fee
The second way you could qualify to become an ICON agent is by achieving an “Annual gross commission income of $500,000 or more with a minimum of 10 closed transactions and payment of an “ICON Qualifying Fee.” This fee is equal to $5,000 less capped transaction fees paid during the same anniversary year.
An example of this would be that you sold ten homes at an average commission income of $50,000 per transaction. You would cap on your second transaction. Then you pay a $250 transaction fee for your next eight transactions totaling $2,000. Finally, you would have a remaining $3,000 to pay for the “ICON Qualifying Fee” to be eligible for ICON Agent status for that year. The “ICON Qualifying Fee” is optional and only required if you wish to qualify for ICON agent status.
The last part of becoming an ICON agent is to ” Demonstrate company culture by giving back by teaching a class, serving on a panel, or serving on a committee. Also, an ICON agent must have a willingness to promote eXp Realty within their community.”
That’s it! Once you’ve accomplished the above requirements, you would earn $8,000 in publicly traded eXp World Holdings (EXPI) common stock. This stock vests after three years.
You would acquire an additional $4,000 after one year, once your cultural requirements are fulfilled and verified.
ICON agents earn the last $4,000 in stock awards after attending each of the two annual eXp Realty events .
Wrapping Things Up
In conclusion, the eXp Realty Commission Split is very generous compared to the majority of brokerages out there. Especially when you consider the ICON Agent Program, eXp Realty is genuinely unique. Combine this with all the tools and training that eXp Realty provides to real estate agents, and you get an excellent opportunity to grow your career in real estate.
Do you have any questions related to the eXp Realty Commission Split? Put them in the comments below and I would be happy to answer them!
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