The Truth about 100% Commission Real Estate Brokerages

Typically, real estate brokerages pay their agents a percentage of the total commissions from a deal, with the remainder of the commission going to the establishment. 

Nevertheless, the 100% commission model has begun to gain more popularity because of the shift to online business models.

If you are an agent – especially a newly certified agent – and you are trying to decide if 100% commission real estate brokerage is the way to go, or if you are simply curious about what it is, then keep reading because we’re breaking down the 100% commission brokerage.

What is a 100% Commission Real Estate Brokerage?

A 100% commission real estate brokerage is a brokerage that pays its agents 100% or the entire commission from a successful deal. This implies that agents at such brokerages do not have to worry about splitting their commission with the brokerage. 

Generally, in the traditional brokerage model, the commission from every deal is split between the agent and the brokerage, such as 50-50, 70-30, etc. Using 70-30, if a deal produces $100,000 as commission, the agent takes $70,000 while the brokerage keeps $30,000. 

However, working with a 100% commission brokerage, the agent keeps the entire commission and is only required to pay a specific amount – which varies depending on the brokerage – as a flat fee for every transaction, no matter the amount of commission. 

If we use the example above, the agent keeps the entire $100,000 while paying $75–$600/transaction and totals depend on caps, monthly desk fees and volume.

The 100% commission brokerage is an ideal design for agents, especially the experienced ones who want to work alone and earn more money than they typically would at a traditional model or build a brand name for themselves without worrying about the influence of the brokerage. 

Candidates who are best suited for this brokerage model are agents who are skilled, experienced, and do not need in-office training. Most of the time, they have built an impressive clientele and a successful business for themselves over the years. 

The Truth about 100% Commission Brokerage

So, is it too good to be true? Well, let’s explore how 100% commission real estate brokerages actually work and whether or not you should work at one.

You Still Have to Pay the Brokerage

Like every other business, real estate brokerages aim to make profits while delivering the desired results to their clients. Hence, the brokerage would not just give their agents 100% commission without finding ways to make money themselves. 

As an agent, you are still required to pay specific fees to be part of the brokerage, although these fees are usually fewer than traditional brokerages. 

Depending on the brokerage, these fees vary as no real estate brokerage has the same fee structure. Some of these fees include a flat transactional fee for every closed deal, monthly desk fee, yearly fee, compliance fees, technology fees, administrative fees, etc., and they usually go to the general maintenance and sustainability of the brokerage. 

When joining a 100% commission brokerage, it is essential to look out for hidden fees and other alternate avenues that these brokerages might use to make more money. Ensure that the brokerage is transparent with their costs and you are familiar with these costs before signing up to be their agent.

Insurance is Typically Paid Upfront

Transactions in real estate almost always involve huge sums of money, and if anything goes wrong, the consequences can be dire. Hence, agents need insurance to protect them from the financial aftermath of various errors and liabilities.

One such insurance agents need to acquire is Errors and Omissions (E&O) insurance, which covers liabilities and fees associated with lawsuits that arise due to:

• Errors in property listings
• Accusations of negligence
• Professional mistakes
• Failure to deliver promised services

Old rule of thumb—writing one big E&O check on day one—has faded. Unlike traditional brokerages, where agents might pay E&O monthly or through a house split, most 100 %-commission firms now deduct a small E&O fee each time you close a deal and stop charging once you hit an annual cap. For example:

• eXp Realty: $60 per transaction, capped at $500 per anniversary year.
• Fathom Realty: $35 per transaction; no upfront payment.
• REAL Broker: $30 per deal plus a $750 annual E&O that is split into three $250 instalments taken from your first three closings—not a lump-sum fee.
• LPT Realty: one-time $500 E&O/tech fee retained from your first closing, then $195 per transaction until you reach the $5 000 annual cap.

This per-deal approach still protects you but spreads the cost over time, so you rarely have to part with a four-figure sum on day one. Other coverages—general liability, cyber-liability, etc.—remain available à-la-carte or through the brokerage’s group policy, but the industry norm for E&O in 2025 is pay-as-you-close with a yearly cap, not an upfront lump-sum premium.

Communication Is (Still) All Virtual—With New In-Person Options

Typically, when joining a more traditional brokerage as a new agent or when you need assistance from more-skilled personnel on closing your deal, you would meet with your superiors at the office. However, this is rarely the case with most 100 %-commission brokerages today.

These firms continue to operate primarily in the cloud, so onboarding, deal reviews, coaching sessions, and team meetings all happen through video chat or inside virtual worlds such as eXp World.

What’s new since 2023 is that several brands now sweeten the package with optional coworking passes or regional hubs for face-to-face meetings when needed—for example, eXp Realty gives every agent complimentary access to more than 4,000 Regus business lounges worldwide, while Realty ONE Group maintains brick-and-mortar offices in many metro areas. ‍

Each brokerage still has its own enrollment flow, but a typical first step is to email your interest and credentials and then complete digital paperwork sent in reply. The virtual model continues to give agents flexibility and independence without the cost of commuting or maintaining a desk—yet those new coworking perks make it easier for rookies who prefer occasional, in-person guidance.

No Brick-and-Mortar Office—or Just a Little‍

Most 100 %-commission brokerages remain virtual-first, which lets them charge very low monthly fees and keep overhead to a minimum. That said, the blanket “no office” rule no longer applies.

Many cloud brokerages now lease small regional hubs or partner with coworking providers so agents can book a private room or host a listing presentation when professionalism demands it. Realty ONE, for instance, lists staffed offices in dozens of U.S. cities, and eXp’s Regus benefit gives agents a polished setting on demand. ‍

Traditional firms still emphasize a permanent office to reassure clients and to stage internal meetings, but the hybrid approach adopted by leading 100 % shops has narrowed that gap.

Lack of Brokerage Support (Not Quite the Same Anymore)‍

A decade ago, agents at 100 %-commission brokerages often went to market with little more than a logo and a transaction management portal.

Today the bigger players pour substantial resources into cloud-based coaching. eXp University streams more than 80 live classes each week and maintains an on-demand library of recorded sessions, while Fathom Realty pairs every new agent with a mentor through its F.A.S.T. program for one-on-one, in-the-field guidance. ‍

The support still differs from the hand-holding available at some traditional brokerages—there is no front desk, and shadowing opportunities are arranged rather than automatic—but new agents can now tap daily training, marketing toolkits, and peer masterminds without leaving home.

The takeaway: coaching exists; you just need the self-discipline to log in and ask for it.

2024 NAR Settlement & the New Buyer-Broker Agreement Rule

The landscape for buyer representation shifted on August 17 2024, when the National Association of REALTORS® implemented practice changes tied to its antitrust settlement. Two points matter most to agents at 100 % brokerages:

1. Written agreement required before showings. Every MLS participant now must have a signed buyer-broker representation agreement before touring a property with a client. The contract spells out the agent’s fee and confirms that commissions are fully negotiable.
2. No more buyer-agent compensation displayed in the MLS. Listing brokers can still offer to pay the buyer’s agent, but that offer can’t be shown on the MLS grid. Compensation is instead worked out in the buyer-broker agreement or negotiated in the purchase contract.

Why it matters to 100 % agents:‍

Because you keep the entire gross commission (minus your brokerage’s flat or per-deal fee), your earnings now hinge on (a) explaining your value in that written agreement and (b) structuring the offer so the buyer or seller covers your fee at closing. Seasoned 100 % agents report little pushback so far—average buyer-agent rates stayed near 2.4 % through late 2024—but the new paperwork forces an upfront, transparent conversation that newer agents should rehearse in advance.

For many clients, the fee still comes from seller proceeds as a closing-cost credit; your job is to document it clearly and make sure the purchase contract reflects the negotiated terms. In short, the 2024 rule change rewards agents who can articulate their worth—exactly the skill set that lets a 100 % model shine.

Final Thoughts 100% Real Estate Commission Real Estate Brokerages

100% commission brokerages are great opportunities for real estate agents to make more money and build a brand for themselves. 

However, it is advisable for newly licensed agents to develop experience in more traditional models of brokerage, as 100% commission brokerages do not provide the necessary support and coaching they might need to develop and advance in the real estate world.