| Aspect | Bay Realty Michigan (Online Brokerage) | RE/MAX (Brick & Mortar) |
|---|---|---|
| Brokerage Model | 100% Online Brokerage – No physical office requirements. | Brick & Mortar – Agents typically work from physical offices. |
| Commission Structure | Flat Fee per Transaction: - Experienced Agents: $500 per transaction (first 20 sales), then $200 per transaction. - New Agents: $600 per transaction (first 20 sales), then transition to experienced agent plan. | Two Main Plans: 1. 95/5 Split: Agent keeps 95% of the commission; RE/MAX takes 5%. This plan requires a monthly desk fee ranging from $300 to $2,500, depending on the office and services provided. 2. Alternative Payment Plan (RAPP): - 80/20 Split: Agent keeps 80%; RE/MAX takes 20% until a $23,000 cap is reached, then moves to 95/5 split. - 70/30 Split: Agent keeps 70%; RE/MAX takes 30% until the cap is reached. - 60/40 Split: Agent keeps 60%; RE/MAX takes 40% until the cap is reached. This level is typically for agents grossing less than $25,000 annually or new agents. |
| Broker Transaction Fees for Clients | None – Clients are not charged transaction fees. | Varies by office – Some RE/MAX offices charge clients a broker fee ranging from $295 to $495 per transaction. |
| Franchise Fees | None – No franchise costs deducted from commissions. | 5% Franchise/Royalty Fee – Deducted from the agent's commission. |
| Monthly Fees | None – No desk fees, technology fees, or office fees. | Varies by Plan: 1. 95/5 Split: Monthly desk fees ranging from $300 to $2,500, depending on the office. 2. RAPP: No monthly desk fees; costs are covered through the commission split until the cap is reached. |
| Additional Support | - Free Errors & Omissions (E&O) insurance. - Customer Relationship Management (CRM) tools. - Website access.- Online transaction checklists. - Flexible work-from-home setup. | - Comprehensive training programs.- Marketing support.- Strong brand recognition.- Access to office facilities (varies by office). |
| Work Environment | - Fully remote, online brokerage. - No required office hours or desk fees. - Agents can work from home or any location with internet access. | - Traditional office setting.- Agents typically have designated desk spaces.- Office presence may be required, depending on the office policies. |
Brokerage Model: Bay Realty Michigan operates entirely online, offering agents the flexibility to work remotely without the need for physical office space. In contrast, RE/MAX follows a traditional brick-and-mortar model, with agents typically working from physical offices.
Commission Structure: Bay Realty Michigan utilizes a flat-fee model, charging agents per transaction, which can be more predictable and cost-effective, especially for high-producing agents. RE/MAX offers both high commission splits with substantial monthly desk fees and alternative plans with lower splits and no monthly fees until a cap is reached.
Client Transaction Fees: Clients of Bay Realty Michigan benefit from no additional transaction fees, potentially making services more attractive. RE/MAX clients may encounter broker fees, which vary by office.
Fees and Expenses: Bay Realty Michigan agents enjoy minimal overhead costs, with no franchise or monthly fees. RE/MAX agents, depending on their chosen plan, may incur significant monthly desk fees and franchise fees, impacting their net earnings.
Support and Resources: Both brokerages offer robust support. Bay Realty Michigan provides essential tools for remote work, while RE/MAX offers extensive training, marketing support, and the advantage of a globally recognized brand.
Work Environment: Bay Realty Michigan offers unparalleled flexibility with its online model, allowing agents to work from any location. RE/MAX provides a traditional office environment, which may appeal to agents who prefer in-person interactions and a structured setting.
In choosing between the two, agents should consider their preferred work environment, financial considerations related to commission structures and fees, and the value they place on brand recognition and support services.
*Note: Specific details, such as desk fees and client transaction fees, can vary by RE/MAX office. Prospective agents are advised to consult with local RE/MAX offices for precise information.*