Commission structure in Sign

Overview

Commissions vary from one agent to another as well as state to state, and in some listings, there are added fees on top of the commission charged.

Commission Structures

As each sale contains a unique commission structure, this article discusses different commission structure options available in Realtair Sign and how to apply them in your listings.

Flat Rate

A set commission rate paid to the agent regardless of how much the property will be sold for. This is the traditional method in calculating how much commission the agent will earn in the listed property.

In Sign, we have two Flat Rate Commissions: 1.) Flat percentage commission, and; 2) Flat dollar commission.

1. Flat percentage commission
   This is based on the sale price multiplied by the negotiated commission rate.
   
   Sample:
   If sale price is set at a flat amount of $1,500,000.00
   Flat percentage commission is 2.2%
   
   Calculated values in the agreement would be:
   

2. Flat dollar commission
   This covers the fee that the Agent will receive regardless of the final sale price of the property.
   
   Sample:
   If sale price is set at a flat amount of $1,500,000.00
   Flat dollar commission is $33,000.00
   
   Agent’s Remuneration in the agreement should be:
   

Tiered Commission

An incentive-based structure that grants agents the opportunity to earn a progressively high commission with each “tier.” The tiered commission rate is a specific percentage of the total price that increases depending on the final sale price of the property. Operating on a sliding scale encourages agents to sell for a higher price.

We have three tiered commission types in Sign, namely:
1.) Fixed %;
2.) Fixed $,
and; 3.) Incremental.

1. Fixed %
   Agent’s commission is based on the final sale price of the property multiplied by the agreed percentage rate of that bracket.
   
   Sample:
   If sale price is set from $1,500,000.00 to $1,600,000.00
   Fixed % Tiered Commission inputs are:
   

   Tier 1 inputs:	$0	$1,300,000.00	1.9%
   Tier 2 inputs:	$1,300,000.01	$1,400,000.00	2%
   Tier 3 inputs:	$1,400,000.01		2.2%
   Tier 4 inputs:
   Tier 5 inputs:		OR GREATER

   
   Agent’s selling fee in the Sliding Scale should be:
   
   
2. Fixed $
   The commission amount that the Agent will earn depends on the price the property will be sold.
   
   Sample:
   If sale price is set from $1,500,000.00 to $1,600,000.00
   Fixed $ Tiered Commission inputs are:
   

   Tier 1 inputs:	$0	$1,300,000.00	$30,400.00
   Tier 2 inputs:	$1,300,000.01	$1,400,000.00	$32,000.00
   Tier 3 inputs:	$1,400,000.01		$35,200.00
   Tier 4 inputs:
   Tier 5 inputs:		OR GREATER

   
   Sliding Scale will display the Agent’s commission at:
   
   
3. Incremental
   This structure allows Agents to earn the base commission amount plus the extra percentage rate for every increment until the final sale price of the property.
   
   Sample:
   If sale price is set from $1,350,000.00 to $1,450,000.00
   Incremental Tiered Commission inputs are:
   

   Tier 1 inputs:	$0	$1,300,000.00	1.9%
   Tier 2 inputs:	$1,300,000.01	$1,400,000.00	2%
   Tier 3 inputs:	$1,400,000.01		2.2%
   Tier 4 inputs:
   Tier 5 inputs:		OR GREATER

   
   Sliding Scale will display the Agent’s commission at: