Both simple and complex commission calculations are easy to get wrong. Brokers are usually honest, but they’re also human--and mistakes do happen. Before you look at your latest commission check and feel like your broker is trying to short you, it’s worth learning more about how the process works.
For many agents, maintaining an accurate pipeline is easily understood but not easily kept front of mind. Administration is often seen as an unnecessary distraction from profit-generating activities like cold calling and showings.
For agents, staying on track with every prospect you come across can be a difficult task. It is not uncommon that tens or hundreds of prospects fall through the cracks of the everyday life, creating lost opportunities for new commissions or listings.
How do you calculate a real estate commission check? Well, it really depends on the brokerage you choose. There are many different models and understanding your brokerage model is absolutely crucial to your business's success.