Most of the agents in real estate earn money through the commissions they get from closed sales transactions and deals. So, before joining any real estate broker business company, as a new agent, you should know the commission split structure of the company.
If you are thinking about joining Windermere Real Estate, you must be wondering, “What is Windermere Commission Split for Agents?”
Now, the problem is the company does not have much information about its commission split structure on the internet. However, in this article, I have gathered the available information about the company’s commission split for your convenience.
Windermere Real Estate agents start with the 50/50 commission split structure, but the commission rate can gradually increase for the agent.
The agent’s commission share can increase depending on his performance in the company. Before you know about Windermere commission split structure and how it works for agents, you should know a little bit about the company as well.
History of Windermere Real Estate
Windermere Real Estate is a privately held real estate company based in Seattle, Washington. In 1972, John Jacobi, a banker, bought a small, eight-agent residential real estate business in Windermere, a neighborhood in Seattle.
Jacob’s small business started to grow with the help of his agents. In 1984, the company established its first office outside Windermere on Bainbridge Island. The company now has offices in Oregon, Washington, Idaho, Montana, Nevada, Hawaii, Utah, California, Arizona, Alaska, Mexico and Colorado. (Check the license requirements in these and other states.)
Windermere Real Estate Company has become the largest regional real estate company in the Western U.S. and it has more than 300 offices. About 7,000 agents work under the company according to an estimate of 2019. Despite the traditional commission structure, the company has been able to attract its share of agents.
Windermere Commission Split for Agents
The commission is the amount of payment a real estate agent gets from selling or buying a client’s house. The commission is usually 6% and then it is split between the seller agent and the buyer agent. Each gets 3%. Then, from this 3%, they have to pay their company or broker.
There are many successful real estate companies in the US. Their success mostly depends on their active and skilled agents. The agents are the soul of the real estate company. The commissions split for agents in these companies are designed in such a way that both the brokers and agents are benefited from it.
As Windermere Real Estate is one of the prominent companies in the western United States, we can say that the company has done a fair job in attracting agents to the company and it commission model.
Now, what do the agents get from Windermere Real Estate? In Windermere Blog, Co-President OB Jacobi mentions that a new agent starts working with the company with a 50/50 commission split. This means the agent gets 50 % of his commission and the other 50% of the commission goes to the broker.
But, the commission split is not fixed. The agent can change the split when he reaches a specific goal. The goal for each agent is set by the company office. The new agent has to start from somewhere but the company gives him or her the opportunity to grow.
After completing each goal, the agent’s commission split can gradually increase to 60/40 percent to 80/20 percent. So, in a few years, the agent keeps 80 percent of his commission to himself and pays only 20 percent to the company. There is no mention of a CAP, something that other companies like Keller Williams advertise. The 80/20 commission split may appear attractive, but over the long haul, this may end up cost the agent more than they would pay with other companies over the course of an entire year.
However, there is no mention of the amount of money the agents have to reach as their goal in the company page. The details are not disclosed to the general public. We can guess it is an amount that the agents can reach.
Therefore, the more the agents sell the more they and Windermere make profits. this way, the company not just offers a working place for the agents; it also gives them the opportunity to build up their career.
Windermere’s Commission Split with Example
Let us create an imaginary scenario to understand Windermere Commission Split Structure. Assume, Mr. Wilson is a new agent who is working for Windermere Real Estate. A client asked him to be his agent for selling a house. Mr. Wilson finds a buyer and the house is sold for $200,000. Suppose
Before the business deal, the seller agreed to give the agents a 6% commission from the selling price. So, the 6% commissions will be divided between Mr. Wilson and the buyer’s agent equally which is 3% each. 6% of $200,000 is $12,000. So, Mr. Wilson will get $6000 from the total commission and the other $6000 will go to the buyer’s agent.
Now, Mr. Wilson has to share the commission with his company. As a new agent of Windermere Real Estate, he is working on 50/50 split. So, 50% of $6000 will be $3000 which he will give to the company. Finally, Mr. Wilson will have $3000 for himself.
Again, imagine that Mr. Wilson has reached his goal as an agent for the company. Therefore, his commission split has become 80/20. This time, he sells another house for $200,000 and gets the $6000 as his share of the commission.
But, he will not be paying 50% of his income anymore. This time he will keep 80% of the commission which will be $4,800. And. as agreed, the company will get 20% which will be $1,200.
This is how Windermere Real Estate works with its agents. The company encourages its agents by giving them the opportunity to have more percentage from the commission rate. The agent who starts with 50/50 commission will definitely work harder to make the split 80/20.
Other Benefits for Agents from Windermere Real Estate
No matter what the commission split structure is, there is no use if an agent does not know how to handle his clients. An agent who works on a 50/50 split can make more money than an agent who works on a 70/30 split if he knows how to work in the real estate market. The reason is he gets more deals and more commission than an agent who does not get clients.
Windermere takes the issue seriously. So, they provide training and mentorship to their agents. The new agents are trained with the best mentors so that they can bring more commission to the company. In 2010, the company created a web platform for its agents. This way, clients can easily reach out to the agents of the company.
One difficulty of a mentor based training system is that the training that the new agent receives might not be the same as other agents. Add to this any potential personality conflicts and the new agent may be placed in a less than favorable position.
Whenever a new agent joins; he or she receives one-on-one assistance from the office co-coordinator to get established in the Windermere system and other required memberships. The company arranges many training programs, seminars and events where agents, brokers and people from local communities meet each other.
Windermere promotes itself as a community based real estate company, it works for the welfare of the local community. The agents are encouraged to participate in the programs. So, from technical support to personal support, a lot is provided by the company.
By now, you must have got your answer about “What is Windermere Commission Split for Agents?” The company has a graduated split structure that motivates the agents to work better.
Also, the friendly environment in the company creates a sense of belonging. Therefore, the agents stay loyal to the company.
Is this the best for the agent? You will have to make that decision. I filmed a video to assist you with this exact decision, including questions to ask a prospective brokerage company.
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