Field Guide to Compensation Plans for Real Estate Agents
(Updated March 2016)
Get the latest news on compensation plans. Are salaries a better idea than commissions? What's the best way to modify your compensation plan? Find the answers to these questions and much more. (A. Creitz, Information & Web Content Specialist)
E - EBSCO articles available for NAR members only. Password can be found on the EBSCO Access Information page.
Compensation Structures for REALTORS®
Compensation Structures for REALTORS®, (2015 National Association of REALTOR® Member Profile).
Compensation Plan Basics
IRS Requires Reporting of Cooperative Commissions (REALTOR.org, January 2016)
Cyclical Determinants of Brokerage Commission Rates (Journal of Real Estate Finance and Economics, Jan. 2014). E
Agent Performance, Incentives, and Ownership, (Journal of Housing Research, 2012). E
Contract Incentives and Effort, (The Journal of Real Estate Research, Oct.-Dec. 2010). E
A Critical Examination of Broker Minimum Service Laws, (Journal of Housing Research, 2010). E
Re/Max Team Pioneers New Industry Standard, (Franchising World, Sept. 2010). E
Don’t underestimate the role of individual agents in disruption in the real estate industry, (Inman, May 1, 2014).
Compensation model crucial when creating real estate team (Inman, Apr. 24, 2014).
Why real estate’s agent-centric broker models are doomed, (AG Beat, Mar. 18, 2013).
Methods of Compensating Real Estate Agents (About.com, 2012).
Compensation Tips for Management Personnel (REALTOR® Magazine).
Salaries or Commissions?
Commission Splits of Real Estate Agents with Affiliated Firms (Journal of Housing Research, 2013). E
How Real Estate Agents earn 100% Commission at Keller Williams (Active Rain, Mar. 2013).
Putting a Nix on Splits (REALTOR® Magazine, Nov. 2009).
Common Commission Options (REALTOR® Magazine, n.d.).
Pay Structures and Commission Split Shares (Economists' Outlook Blog, National Association of REALTORS®, Sept. 12, 2011).
Methods of Compensating Real Estate Agents - Commissions and Splits (About.com, n.d.).
Be respected as an advisor: stop being paid like a salesperson (Realty Times, Apr. 14, 2009).
Compensation and Short Sales
Freddie Mac Amends Short Sale Affidavit Policy, (Government Affairs, National Association of REALTORS®).
HAFA Commissions Policies, (Government Affairs, National Association of REALTORS®).
Freddie Mac Short Sales Commission Policy, (Government Affairs, National Association of REALTORS®).
Fannie Mae Short Sales Commissions Policy and Appeals Process, (Government Affairs, National Association of REALTORS®).
California REALTORS® Change the Rules for Short Sale Offers of Compensation, (Realty Times, Oct. 30, 2012).
How to Make REOs Work for You (REALTOR® Magazine, Jan. 2012).
Offers of Compensation Are Not So Clear When It Comes to Short Sales (Realty Times, Aug. 30, 2011).
eBooks & Other Resources
The following eBooks and digital audiobooks are available to NAR members:
Ready-Made Employment Contracts, Letters & Forms (Kindle, Adobe eReader)
What Your CEO Needs to Know About Sales Compensation (Kindle, Adobe eReader)
Compensating the Sales Force (Adobe eReader)
Books, Videos, Research Reports & More
The resources below are available for loan through Information Services. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Services at 800-874-6500 for assistance.
2015 NAR Member Profile (National Association of REALTORS®, 2015).
The Retention Tool Kit (REALTOR® Magazine Tool Kit) — See “Structuring Compensation” section
REALTrends Broker Compensation Report (Castle Rock, CO: Real Trends, Inc., 2011). HD 1375 R22b
The real estate entrepreneur: everything you need to know to grow your own brokerage (New York, NY: McGraw-Hill, 2007). HD 1375 P41
Field Guides & More
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