Brokerage Modeling Excel File

Brokerage Modeling Excel File

A brokerage model is useful when a leader can see how assumptions affect the company’s possible economics. The worksheet described here is designed for a brokerage or team evaluating a new structure, and its outputs depend on the values entered for the market and operating plan.

Let’s start with the assumptions.

Enter a market-specific average volume per agent and commission rate. Treat example values as placeholders rather than universal defaults. Gross Commission Income (GCI) can then be reviewed alongside any off-the-top rake or advertising charge.

List the percentages that apply to the brand, office or team and local marketing. Add yearly errors and omissions costs and any monthly fees. If a fee varies by transaction, record it separately so the model does not hide the operating burden inside a broad percentage.

Use the average price for the market to translate volume into units. Then consider per-transaction fees, transaction-level errors and omissions, risk management and transaction coordination. Review every input with the person responsible for that cost.

Download our Brokerage Modeling Excel File

The worksheet’s grey assumption cells are intended inputs; calculated cells show scenario estimates from those values. Change one assumption at a time, inspect the effect on company dollar and record the scenario’s date and owner. Read the formulas and validate the assumptions before using an output in a decision.

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