Real Estate Commission Splits Explained: 80/20 vs 100% Plans

When a real estate transaction closes, the listing brokerage receives the listing-side commission and the buyer's brokerage receives the buyer-side commission. These amounts are set in the listing agreement and buyer representation agreement respectively. Your brokerage then splits that commission with you according to your plan. But it's not always that simple. Many brokerages layer additional deductions on top of the split: franchise royalties (6–8% off the top at national brands), desk fees, technology fees, E&O insurance markups, transaction coordination fees, and sometimes even "administrative" or "compliance" fees. By the time all deductions are applied, an agent on a "70/30 split" might actually keep less than 55% of their gross commission. Understanding the total cost of your brokerage — not just the headline split — is the single most important financial decision you'll make as an agent.

With an 80/20 split, you keep 80% of every commission and the brokerage keeps 20%. At Ivy Realty, this plan comes with: • Zero monthly fees • Zero desk fees • Zero technology fees • Zero onboarding/startup fee • E&O insurance included • Full access to every tool (CRM, marketing suite, academy, e-signatures) The 80/20 plan is ideal for: New agents who are building their business and want zero risk. You pay nothing unless you close a deal — and when you do, you keep a strong majority. Part-time agents who close a handful of deals per year. With no monthly overhead, you're never paying for a brokerage during quiet months. Agents testing the waters who want to try a new brokerage with zero financial commitment upfront. Let's look at the numbers. On a $7,500 commission (typical for a $250,000 home at 3%), you keep $6,000 and the brokerage keeps $1,500. No other deductions. Compare that to a franchise brokerage where the same commission might net you $4,200 after franchise fees, splits, and monthly charges.

A 100% commission plan means you keep every dollar of your commission. At Ivy Realty, the cost is: • $25/month flat fee • $395 per closed transaction • Zero desk fees, zero tech fees, zero franchise royalties • E&O insurance included • Full access to every tool This plan is designed for agents who close regularly, because the flat fees become a tiny fraction of your total income. On that same $7,500 commission, your take-home is $7,105 — a difference of $1,105 compared to the 80/20 plan on a single deal. The breakeven point: If 20% of your commission exceeds $395, the 100% plan saves you money. That means any commission above $1,975 makes the 100% plan the better choice. Since the average buyer-side commission in Maricopa County is around $7,000–12,000, virtually every transaction favors the 100% plan. For an agent closing just one deal per month at $8,000 average commission: • 80/20 plan: You pay $1,600/month (20% of $8,000) • 100% plan: You pay $420/month ($25 + $395) • Monthly savings: $1,180 • Annual savings: $14,160

When comparing commission plans across brokerages, look beyond the headline split. Here are fees that many brokerages don't mention upfront: Franchise royalties (6–8%): National brands charge this off the top of every commission before your split is calculated. On a $10,000 commission with a 7% royalty and 70/30 split, you lose $700 to franchise + $2,790 to the split = $3,490 total. Desk fees ($200–500/month): Charged whether you close deals or not. Some brokerages require a 12-month commitment. Technology fees ($100–300/month): For CRM access, transaction management software, and website hosting that many agents barely use. E&O insurance markups: Some brokerages charge $500–800/year for E&O coverage that costs them far less in group policies. Transaction coordination fees ($300–500/deal): Charged to process your paperwork — on top of your commission split. Cap resets: Some "100% after cap" plans reset annually, meaning you pay full splits at the start of every year until you hit the cap again. Exit fees: Some contracts include early termination penalties of $500–1,000. At Ivy Realty, there are zero hidden fees. The price you see is the price you pay. Period.

Let's compare three scenarios for an agent closing 15 transactions per year at $9,000 average gross commission ($135,000 total gross): Scenario A — National franchise (70/30 split + fees): • Franchise royalty (7%): −$9,450 • Brokerage split (30% of $125,550): −$37,665 • Desk + tech + E&O fees: −$8,400/year • Take-home: $79,485 (59% of gross) Scenario B — Ivy Realty 80/20 plan: • Brokerage split (20%): −$27,000 • No other fees • Take-home: $108,000 (80% of gross) Scenario C — Ivy Realty 100% plan: • Monthly fee ($25×12): −$300 • Transaction fee ($395×15): −$5,925 • Take-home: $128,775 (95.4% of gross) The difference between Scenario A and Scenario C is $49,290 per year — that's not a rounding error. That's a down payment on an investment property, a full year of marketing spend, or simply the financial freedom to run your business on your terms.

At Ivy Realty, you can switch between the 80/20 and 100% plans with 90 days notice. Many agents start with 80/20 to eliminate all risk while building momentum, then switch to 100% once they're closing consistently. There's no wrong choice — both plans include the full suite of tools: CRM, marketing suite, digital transaction coordinator, online academy, blockchain e-signatures, market reports, and direct broker access. The only difference is how you pay. Ready to see how much more you'd keep? The application takes about five minutes, and we do same-day onboarding — most agents are active and ready to work the same day.