Issac KrispinIn a bid to expand and attract new talent, the residential sales and rental brokerage Urban Sanctuary is switching to a 100 percent commission model, according to firm president Isaac Krispin.As of June 5, Krispin said, agents will no longer pay a percentage of each commission to the firm. Instead, they will pay a flat monthly fee of $99, as well as a transaction fee on each deal. The company, which currently has around 30 agents, aims to grow to several hundred in the next three years, he said. Krispin, who founded Urban Sanctuary in 2004, said he hopes the move will differentiate his firm from other brokerages.
“Agents are hopping from one company to another in search of a larger split,” he said. “If you have a 100 percent split … no one can compete with that.”
The new compensation model will apply to all of Urban’s current agents and any new recruits. In addition to the monthly fee, agents will pay $375 for every rental deal, $1,000 for every sale under $1 million, and 10 percent of the total commission on sales over $1 million.
The high-commission-split model has grown increasingly popular in Manhattan since Rutenberg Realty was founded in 2006. Krispin said his model is different from competitors because he will continue to offer amenities — including a listings database, training and administrative support — more typical of traditional brokerages than high-commission-split firms. The change, however, has cost Krispin his partnership with former Prudential Douglas Elliman agent Mickey Roth, whose Galleria Group merged with Urban last year. Roth was not in favor of the new model and the pair split ways two months ago, Krispin said.
“[Roth] didn’t want to go in this direction,” Krispin said. Roth did not respond to a request for comment. Despite the split, Krispin said he’s confident the switch is the right decision. “It’s a smart move if you’re doing it the right way,” he said.