Flat fee versus commission split, with the maths shown
Both models cost you money. The difference is whether that cost grows every time you have a good year. Here is the break-even, with the assumptions written out so you can check them against your own numbers.
The assumptions
- Average sale price of $400,000
- 3% commission to your side
- You currently keep 70% after your split
- CapTex costs $100 per month plus $99 per closed transaction, with no percentage split
- MLS dues, association dues, lockbox and Supra fees, and your own business costs are excluded, because you pay those either way
Change any of these and the break-even moves. The calculator on the homepage lets you put your own figures in.
At different production levels
2 closings a year
- Gross commission
- $24,000
- You keep on a 70/30 split
- $16,800
- You keep at CapTex
- $22,602
- Difference
- +$5,802
6 closings a year
- Gross commission
- $72,000
- You keep on a 70/30 split
- $50,400
- You keep at CapTex
- $70,206
- Difference
- +$19,806
12 closings a year
- Gross commission
- $144,000
- You keep on a 70/30 split
- $100,800
- You keep at CapTex
- $141,612
- Difference
- +$40,812
24 closings a year
- Gross commission
- $288,000
- You keep on a 70/30 split
- $201,600
- You keep at CapTex
- $284,424
- Difference
- +$82,824
| Closings a year | Gross commission | Kept on a 70/30 split | Kept at CapTex | Difference |
|---|---|---|---|---|
| 2 | $24,000 | $16,800 | $22,602 | +$5,802 |
| 6 | $72,000 | $50,400 | $70,206 | +$19,806 |
| 12 | $144,000 | $100,800 | $141,612 | +$40,812 |
| 24 | $288,000 | $201,600 | $284,424 | +$82,824 |
Where the flat fee stops winning
On these assumptions the flat fee is ahead from the first closing, because $1,200 a year plus $99 a deal is far less than 30% of a $12,000 gross commission. The comparison changes if any of the following is true for you.
- You close very little. At one or two transactions a year, a competitor's low annual plan may cost you less than $1,200.
- Your split is already close to 100%, or you have a cap you reliably hit early in the year.
- Your current brokerage supplies something you would otherwise buy, and you actually use it.
These are the cases we would rather flag on a call than discover after you have paid for three months.
Every figure on this page is an illustration for comparison, not a projection or a guarantee of income. Your result depends on your own production, your own pricing and your existing brokerage agreement.
Next step
See what a no-split brokerage would actually cost you
Send us your numbers and we will come back with a confidential, side-by-side comparison against what you pay now. If it is not clearly better for you, we will say so.
The form takes about two minutes. If you would rather just talk, book straight into the calendar. Either way, no payment is taken and no obligation is created at this stage. Prefer to call? 512-810-9685. Prefer email? join@captexrealty.com.