Are You Leaving Thousands on the Table? 5 Warning Signs You Might Be Overpaying Your Brokerage
- Derek Goude
- Nov 17
- 6 min read
Updated: Dec 8
Are you leaving thousands of dollars on the table every year? Many real estate agents don't realize they're overpaying their brokerage until it's too late. Here are five warning signs that you might be one of them.
Let's be honest: Real estate is tough enough without giving away a huge chunk of your hard-earned commission to your brokerage. Yet every day, agents across Oregon and Washington are doing exactly that—often without realizing how much it's actually costing them.
After talking with hundreds of agents who've made the switch to Realty First, I've identified five common red flags that signal you're probably overpaying your current brokerage. If even one of these sounds familiar, it might be time to take a closer look at where your money is really going.
🚩 Red Flag 1: Your "Split" Isn't Really Your Split
You think you have a 70/30 split, right? You keep 70%, the brokerage takes 30%. Simple math.
Except it's not.
Here's what many agents don't realize: Most brokerages calculate your split after taking out transaction fees, desk fees, technology fees, and a dozen other charges. So your actual take-home is often far less than that advertised 70%.
The Real Math:
Let's say you close a deal with a $10,000 commission:
Gross Commission: $10,000
Brokerage Split (30%): -$3,000
Transaction Fee: -$395
E&O Insurance: -$50
Technology Fee: -$75
Franchise Fee: -$150
Your Actual Take-Home: $6,330 (63.3%)
That's not a 70/30 split—that's a 63/37 split. Multiply that by multiple transactions per year, and you're leaving serious money on the table. An agent doing $150,000 in annual commission could be losing an extra $10,000+ to these hidden fees.
💡 Quick Check: Pull out your last closing statement and add up ALL the fees that came out before you got paid. Then calculate your actual percentage. The number might shock you.
🚩 Red Flag 2: You're Paying for "Support" You Never Use
Many traditional brokerages justify their high fees by pointing to all the "support" they provide:
Weekly office meetings you rarely attend
A desk you never sit at
Administrative staff you don't interact with
"Training" that's really just sales pitches for the brokerage's preferred vendors
Marketing materials you create yourself anyway
Meanwhile, you're paying $200-500 per month in desk fees for an office you visit once a quarter.
The Modern Reality:
Today's successful agents work differently. You're meeting clients at coffee shops, signing documents electronically, and collaborating via Zoom and text. The traditional office model doesn't match how you actually work—but you're still paying for it.
Ask yourself: What services does your brokerage provide that you actually use regularly? If you can't name at least three, you're overpaying for infrastructure you don't need.
🚩 Red Flag 3: Your Technology Stack Costs Extra
In 2025, transaction management software isn't a luxury—it's a necessity. Yet many brokerages still charge separately for basic tools like:
Transaction management: $50-100/month
E-signature platform: $25-50/month
CRM access: $50-150/month
Website/IDX: $100-300/month
Marketing tools: $50-200/month
That's potentially $275-800 per month on top of your already-high commission split and desk fees.
What Should Be Included:
Professional transaction management (like SkySlope), basic back-office tools (like BrokerSumo), and E&O insurance should be part of your monthly brokerage fee—not add-ons that nickel-and-dime you to death.
At Realty First, our $119.99/month fee includes SkySlope, BrokerSumo, full E&O insurance, and access to RMLS, WVMLS, and MLSCO. No surprises. No extra charges.
💰 Calculate Your Real Costs: Add up ALL your monthly fees—brokerage split, desk fees, technology subscriptions, insurance, MLS dues. The total might be eye-opening.
🚩 Red Flag 4: You're Capped... But It Doesn't Help
Some brokerages advertise a "cap" on their annual fees as a selling point. "You only pay X amount per year, then you're at 100%!" Sounds great, right?
But here's the catch: Those caps are often set so high that most agents never reach them. And even when you do hit the cap, you're often still paying transaction fees, desk fees, and technology charges.
The Real Numbers:
Common cap structures:
$18,000 cap: Requires $60,000+ in gross commission to reach
$24,000 cap: Requires $80,000+ in gross commission to reach
$30,000 cap: Requires $100,000+ in gross commission to reach
And remember—you're paying that much before you start keeping 100%. For many agents, especially those doing moderate volume, caps aren't the benefit they appear to be.
Better Math:
At Realty First, you pay $119.99/month ($1,439.88/year) and keep 100% commission from day one. No cap to chase. No complex calculations. Just straightforward pricing.
🚩 Red Flag 5: You Can't Get a Straight Answer About Fees
This might be the biggest red flag of all. If you ask your broker "How much exactly will I take home from a $10,000 commission?" and they can't give you a clear, immediate answer—or worse, they give you a vague response about "it depends"—that's a problem.
Warning Signs of Fee Opacity:
Your Independent Contractor Agreement is 40+ pages of legal jargon
Different agents at your brokerage have wildly different fee structures
New fees keep appearing on your settlement statements
Your broker refers you to the "accounting department" for fee questions
You've gotten surprise bills after thinking you understood your costs
Transparency matters. You should be able to calculate exactly what you'll take home from any transaction before it closes. If your brokerage makes that difficult, it's usually because they don't want you doing the math.
What This Really Costs You Over Time
Let's put real numbers to these red flags. Here's what an average agent with $100,000 in annual gross commission pays under different models:
| Fee Type | Traditional Brokerage | Realty First |
|-----------------------|-----------------------|-------------------|
| Commission Split | $20,000-30,000 | $0 |
| Transaction Fees | $2,000-4,000 | $0 |
| Desk/Office Fees | $2,400-6,000 | $0 |
| Technology Fees | $600-2,400 | $0 |
| Monthly Fee | $0 | $1,439.88 |
| TOTAL ANNUAL COST | $25,000-42,400 | $1,439.88 |
| YOUR TAKE-HOME | $57,600-75,000 | $98,560 |
That's $23,560 to $40,960 more in your pocket every single year. Over a 10-year career? That's $235,600 to $409,600. That's a paid-off mortgage. That's your kids' college fund. That's early retirement.
What Should You Do If You Spotted These Red Flags?
First, don't panic. You're not alone—most agents don't realize how much they're overpaying until someone points it out. Here are your next steps:
1. Calculate Your Real Costs
Pull your last 3-6 months of settlement statements and add up every single fee that came out before you got paid. Include:
Brokerage split percentage
Transaction fees
Desk fees
Technology subscriptions
E&O insurance
Franchise fees
Any other recurring charges
Then divide your total costs by your gross commission to get your real take-home percentage.
2. Use Our Free Calculator
Want to see exactly how much you could save with a 100% commission model? Our savings calculator lets you input your actual numbers and see real comparisons.
💰 Calculate Your Potential Savings
See exactly how much you could save by keeping 100% of your commission. Use Free Calculator →
3. Ask Your Current Broker Hard Questions
Before making any decisions, have an honest conversation with your current broker. Ask:
"Can you list every fee I pay, monthly and per transaction?"
"What exactly do I get for my commission split?"
"How does my take-home compare to a 100% commission model?"
"Why do I pay for services I don't use?"
Their answers (or lack thereof) will tell you a lot.
4. Explore Your Options
The good news? Switching brokerages is easier than you think. Most transfers complete within 5-7 business days, and you can even switch mid-transaction without disrupting your current deals.
At Realty First, we've helped hundreds of agents make the switch to 100% commission. The process is straightforward, and we handle all the heavy lifting.
The Bottom Line
You didn't get into real estate to work for your brokerage. You got in to build your own business and create financial freedom for yourself and your family.
But if you're seeing these red flags, your brokerage might be working against that goal—not for it.
Here's the thing: The traditional brokerage model was designed decades ago when agents needed office space, administrative support, and access to paper MLS books. That world doesn't exist anymore.
Today, you have a laptop, a smartphone, and the skills to run your business independently. You don't need to give away 20-40% of your income for services you don't use.
The math is simple:
Keep 100% of your commission
Pay $119.99/month for everything you actually need
Get full broker support when you need it
Keep thousands more dollars every year
That's not a dream—it's how modern real estate works.
Ready to Stop Overpaying?
If you spotted even one of these red flags, let's talk. I'm Derek Goude, the principal broker at Realty First, and I'd love to show you exactly how much you could save.
Here's what happens next:
We'll look at your actual numbers (100% confidential)
Calculate your potential savings
Show you what's included in our $119.99/month
Answer all your questions about switching
You decide if it makes sense for your business
No pressure. No obligation. Just honest numbers.
All conversations are kept strictly confidential. Your current broker will never know we talked unless you decide to make a change.
About Derek Goude
Derek Goude is the principal broker and founder of Realty First, a 100% commission real estate brokerage serving Oregon and Washington. With over 15 years in real estate, Derek started Realty First after experiencing firsthand the frustration of overpaying traditional brokerages. He's passionate about helping agents keep more of what they earn while providing the technology and support they need to succeed.
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