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What is a Diminishing Cap?

We believe that the Diminishing Cap Program is one of the biggest benefits to agents choosing Community Realty. Because there is no one else in our industry doing anything like this, it can be a little confusing, so here is how it works.

Your Annual Cap starts out at its base rate of $5,000, $8,000, or $12,500 depending on your level as an Architect, Builder, or Planter. Your Cap diminishes in 2 different ways.

  • Recruiting: If you are the primary cause of an agent joining Community Realty you receive $300.00 off your Cap the following year.

  • Production: For every 10 transactions you close, you receive $300.00 off your Cap the following year.

Here is an example:

If you bring 3 agents on board, you receive $300.00 per agent or $900.00 off your Cap starting at your next anniversary date.

If you also closed 21 transactions, you would qualify for another $600.00 off your Cap for the next year which would bring your Annual Cap down to $3,500.00.

Here are the benefits:

  • Once your Cap diminishes it is diminished as long as you are with Community Realty.
  • MINIMUM CAP IS ONLY $500.00 per YEAR. That means your brokerage fees could reduce to $500.00 a year period, as long as your license is with Community Realty.
  • You can earn up to $1500.00 off your Cap per year until you reach the Minimum Cap.

Here are the rules:

  • You receive credit for recruiting agents once you and the agent both satisfy your Cap.
  • Production Cap reductions are limited to $600.00 per year or 20 transactions.
We are excited you are taking the first steps in Investing in YOU and your future! We can’t wait to see what happens next! If you have any questions, about Diminishing Cap, please contact Jenn directly at

[email protected] or 517-798-4035.

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