Real Estate Maximum, or commonly known as Remax is one of the top-selling real estate companies and the second-highest selling real estate company in America. Established in 1973, Remax now has 120,000 in over 100 countries and territories all over the world as of 2019.
The original idea of the company was to allow real estate agents all the freedom they need to do business while getting 100% in commissions for their effort. In exchange, the agents would just pay a “desk fee” for office expenses. But even if the commission split has now changed, Remax is still thriving.
So how much are Remax desk fees? And what other things do agents have to know before partnering with this successful company? Read more as we are going to tackle this topic in today’s post.
What Remax Provides?
Remax aims to create a commission-based model that is as close to an entirely autonomous real estate business as possible. Aside from that, the company provides these lucrative opportunities to attract more skilled agents.
How Does It Work?
Remax provides commission to agents through a 95/5 split. But this is only applicable if you’re an experienced real estate agent with a high level of sales and an established base of operations. So it goes without saying that the company also offers other kinds of commission split for lesser performing realtors. And we’re going to discuss more about those plans in this section:
- 95/5 Split – The realtor/agent earns 95% of the gross commission from sales (also known as “corporate marketing fee”) while Remax gets the remaining 5% to pay for ads and their use of the national IDX system. For this business model, the realtor is required to pay a desk fee somewhere between $300 to $2500 which includes an office spot, broker fees, ads, business cards, etc.
- 80/20 Split – The realtor/agent earns 80% of the gross commission from sales while Remax gets the remaining 20%. This model is only applicable until the realtor reaches the $23,000 commission threshold.
- .70/30 Split – The realtor/agent earns 70% of the gross commission from sales while Remax gets the remaining 30%. This model is also applicable until the realtor reaches the $23,000 commission threshold.
- 60/40 Split – The realtor/agent earns 60% of the gross commission from sales while Remax gets the remaining 40%. Again, this model is also applicable until the realtor reaches the $23,000 commission threshold.
Realtors who will acquire a Remax franchise will have to invest around $38,000 to $219,000. And they will also have to choose among the following fees:
- $138 (Monthly fee per associate)
- $410 (Annual fee per associate)
- $131 (Promotion cost per associate)
In addition, other fees (office, services, etc.) are negotiable bet. the broker and the agent since this matter usually depend on various factors such as how big is the office space required, benefits to be provided to the agent, related costs, and so on.
All in all, Remax is a great way to earn as a realtor since they offer flexible commission structures through their different commission split models.