Discount and Low-Fee Brokerages Explained

The short version

Lower fee brokerages compete on how much of the commission the agent keeps. For a new agent the fee is only one piece. Training, contract help and who answers your questions also matter.

We do not give an opinion on any company. We use SEC filings, and we label each fact with its source and check date. The Bauer Group is also a brokerage, so we compete with these companies. Read with that in mind.

Education only, not legal, tax or financial advice. Confirm licensing rules with TREC.

What the model is

In a traditional split, the agent and the brokerage divide each commission by a set percentage. In a lower fee model, the agent usually pays a flat fee or a small share per deal, up to a yearly cap. After the cap, the agent may pay little or only small per deal fees. Terms are set by each company and can change.

What two companies publish about fees

These are the companies' own words about their plans. They are not a recommendation, and plans can change. Ask for current written terms.

A worked example with made-up numbers

These numbers are invented to show how a cap works. They are not from any company.

Say a brokerage charges a flat fee per deal and caps total fees at a set yearly amount. An agent who closes a few deals pays the fee on each one. An agent who closes many deals stops paying per deal fees once the cap is reached, and may pay only small fees after that. The total cost is the sum of every fee, so a low headline fee can still cost more if many small charges are added.

Always ask for the fee list on one page and add it up for the number of deals you expect in your first year. A new agent may close few deals in year one, so the cap may matter less than the annual fee and the monthly charges.

How agents are typically paid

A common pattern is that the agent keeps most of each commission until the yearly cap is reached. The brokerage is paid by fees. Other charges may apply, such as technology, compliance or annual fees. Read the full list, not only the headline split.

Who owns the client and the listing

This is set by your written agreement, not by the type of brokerage. Ask who holds the listing, who holds the client relationship, and what happens to pending deals if you leave.

How leads usually arrive

In many lower fee models, agents bring their own clients. Some companies offer lead programs, often with extra terms. Ask exactly what is provided, and what it costs, in writing. Never assume leads are included.

Typical support

Many lower fee companies run online, with fewer walk-in offices. Support may come through video calls, a help desk and online training. Ask who coaches a new agent in the first 90 days, and by name.

What companies say about their own risks

Public companies must list risks. A risk line is not a finding of fault. These are short quotes, not our views.

• Fathom says "we might not be able to attract, retain and incentivize agents."
• Fathom also says "Our agent commission plans might not positively contribute to agent recruitment and retention."
• Real Brokerage has a risk heading that reads "The Company may be unable to maintain its agent growth rate."

What agents and reviewers say

Review data was limited when this page was written. We could not load a public review source that allows reading, so we are not reporting review counts, scores or quotes. We will not guess what agents think.

Ask each brokerage for two or three agents in your market who joined in the last year. Ask what surprised them, and ask the same of every brokerage.

Eight questions to ask any lower fee brokerage

These are our planning questions, not TREC rules. Get the answers in writing.

• What is every fee I would pay in my first year, and when is each due?
• What is the yearly cap, and when does the year start?
• What do I pay after I reach the cap?
• How and when am I paid after closing?
• Who answers my Texas contract questions, and how fast?
• What training is there in my first 90 days, and who gives it?
• How do leads reach agents, if at all, and at what cost?
• What happens to my pending deals if I leave?

Who may want to look closer, and who may want to compare more

We do not say who should join any brokerage. These are questions that help you decide for yourself.

You may want to look closer if keeping more of each commission matters to you and you are comfortable finding your own clients.

You may want to compare more if you expect to need hands-on coaching. Ask each company what a new agent gets, in writing.

How we wrote this

Sources: the Fathom Holdings Form 10-K for 2025 and the Real Brokerage annual information form, both on SEC EDGAR and checked October 14, 2026. We left out any fact we could not read from a primary source.

Experiences vary by office and team. If you see an error, write to agents@joinbauergroup.com. We apply corrections within 2 business days.

Comparing options?

Ask any brokerage the same questions. Our guides on choosing a brokerage in Texas and the six types of brokerages can help you set up your list. See also our side by side of Fathom, Real and LPT.