| Aspect | Bay Realty Michigan (Online Brokerage) | Coldwell Banker (Traditional Brokerage) |
|---|---|---|
| Brokerage Model | 100% Online Brokerage – No physical office requirements | Traditional Brick-and-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 | Varies by Experience and Office: - Starting Agents: Often a 50/50 or 55/45 split (agent/broker) - Experienced Agents: Potential for 60/40, 70/30, or higher splits, based on performance - Note: Commission structures can vary by franchise and individual negotiation |
| Franchise Fees | None – No franchise costs deducted from commissions | Typically 5% to 6.5% per transaction, depending on the franchise |
| Monthly Fees | None – No desk fees, technology fees, or office fees | Varies by office; some agents report fees ranging from $150 to $179 per month, which may include royalty fees |
| Client Transaction Fees | None – Clients are not charged transaction fees | Varies by office; some may charge a transaction management fee, with amounts varying by location |
| Additional Support | - Free Errors & Omissions (E&O) insurance - CRM tools - Website access - Online transaction checklists - Flexible work-from-home setup | - Comprehensive training programs - Marketing resources - Strong brand recognition - Mentorship opportunities |
| Work Environment | - Fully remote, online brokerage - No required office hours or desk fees - Agents can work from any location with internet access | - Traditional office setting - Office presence may be required, depending on the franchise - Access to in-person support and resources |
Summary of Comparison
Brokerage Model:
- Bay Realty Michigan operates entirely online, offering agents the flexibility to work remotely without the need for physical office space.
- Coldwell Banker 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.
- Coldwell Banker offers varying commission splits, often starting at 50/50 or 55/45 (agent/broker) for new agents, with the potential for higher splits as agents gain experience and negotiate based on performance.
Franchise Fees:
- Bay Realty Michigan does not charge franchise fees, allowing agents to retain more of their earnings.
- Coldwell Banker typically charges a franchise fee ranging from 5% to 6.5% per transaction, depending on the franchise.
Monthly Fees:
- Bay Realty Michigan agents enjoy minimal overhead costs, with no monthly fees.
- Coldwell Banker agents may encounter monthly fees that vary by office; some agents report fees ranging from $150 to $179 per month, which may include royalty fees.
Client Transaction Fees:
- Bay Realty Michigan does not charge transaction fees to clients, potentially making services more attractive.
- Coldwell Banker clients may encounter transaction management fees, which vary by office and location.
Support and Resources:
- Both brokerages offer robust support.
- Bay Realty Michigan provides essential tools for remote work, including free E&O insurance and CRM tools.
- Coldwell Banker offers comprehensive training programs, marketing resources, strong brand recognition, and mentorship opportunities.
Work Environment:
- Bay Realty Michigan offers unparalleled flexibility with its online model, allowing agents to work from any location with internet access.
- Coldwell Banker 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 commission splits, fees, and client transaction fees, can vary by Coldwell Banker franchise. Prospective agents are advised to consult with local offices for precise information.
