Blog
REALTORS WHO ARE JOINING 100% COMMISSION PLAN BROKERAGES ARE MAXIMIZING THEIR PROFIT
Signing up for 100% commission real estate brokerage can increase your profitability in many ways. For one, you will get the entire commission for every closed deal. This means that you get to enjoy all the fruits of your labor—there’s no need to split your earnings with anyone or any firm. Aside from this advantage, there are many other reasons why a 100% commission plan can help you earn more:
Access to sales and marketing tools
Some people mistakenly believe that 100% commission brokers get less support from their brokerages—that they don't enjoy the educational benefits or training that traditional brokerages provide to their agents. This is not true. Reputable 100% commission real estate firms offer their agents free access to their tools, helping them improve their selling and buying skills and close deals.
Build your own brand
The goal of a 100% commission plan is not just to give you a higher incentive but also allow you to build your brand. By working with 100% commission real estate firms, you can focus better on your desired outcome and build upon specific skills. And when people see you as a reliable real estate agent of residential or commercial properties, they will come to you. Your growing network and leads ultimately increases your chances of earning more.
No office rentals to pay
You will benefit from low office overhead as an agent of a 100% commission brokerage. In fact, you don't even have to pay for office-related fees or maintenance especially if you mostly work from home. The savings can be astounding.
Of course, the only way to enjoy these benefits is to partner with the right brokerage. Consider firms that have a proven reputation for producing successful agents as well as those that have a diverse background in the property industry.
QUICK TIPS FOR REALTORS
IN THEIR SEARCH FOR A REAL ESTATE BROKER
One of the first things that a realtor should consider when choosing a brokerage is the commission percentage or split. Many traditional brokerages divide the commission evenly, leaving their agents with less than what they should have been paid. This is why many realtors—beginner and seasoned—see the many advantages of 100% commission brokerage, and why you should consider switching to it, too.
Following the 100% commission real estate broker model, brokerages can give their agents the entire 100% commission. This enables agents like you to reap and enjoy all the benefits of your hard work in selling or buying properties.
Of course, nothing is free. Most brokerages offering this arrangement require realtors to pay a membership fee monthly or annually. They, in turn, provide training, support, and resources that the realtors need to boost their sales rate and credibility successfully.
It is important to take note that not all 100% commission brokerages offer the same services and benefits for agents. That's why you must do further research about the company before signing up.
Are you looking to join a brokerage with 100% commission? Here are some tips for you.
• Choose brokerages with clear policies.
A trusted real estate brokerage has clear and understandable policies. They will tell you exactly how much you need to pay for the membership fee per month and per transaction or closed deals. They are clear about their requirements and are also
consistent when it comes to receiving your commission.
• Watch out for hidden charges.
The brokerages that you want to avoid are those that impose many hidden charges. Pay careful attention to their terms before signing up. You want to know exactly what you are paying for and why.
• Opt for brokerages with flexible terms.
The 100% commission real estate broker model is designed for realtors who want to work at their own pace and build their brand. If this sounds like you, then join a brokerage that doesn't require full commitment, allowing you to work independently.
Look for those firms that will allow you to cancel your membership anytime.
• Check their reputation.
You are better off working under a brokerage firm that has an established name—one that has been in business for more than a decade. One way of checking if they are reputable is to check which companies they are affiliated with.
100% Commission Real Estate Brokerages
The Six Points Realtors Should Look For
Real Estate is one of the most profitable businesses in today’s world. People are continuously looking to expand their assets with a considerable return, therefore there is a never-ending need of real estate. Unlike other investments such as stock, bonds, etc, real estate is less variable and more consistent. Real estate Brokers try to attract Realtors with many different types of offers. One concept that many brokers are implementing these days is the “100 percent commission model”. But beware, often there are other hidden fees or restrictions that agents might not realize until it comes time for their first closing. Here are a few things to remember while looking for 100% commission in Real Estate Brokerages.
1. Check the Terms and Conditions: Before signing your independent contract agreement with your Broker go through the terms and conditions. Do not get lured in with the “100 percent commission” model without asking the right questions. Check each and every point thoroughly, and even ask for the policy and procedure manual. This will help to avoid any confusion or conflict in the future, while still being able to get your 100 percent commission.
2. Check the Company Culture: Along with the Company name and brand, the work culture of the company matters most of the time. A good company with good work culture not only gives you 100 percent commission but also gives you 100 percent work satisfaction. Therefore, make sure find out if they have any restrictions on how you advertise and promote your business. Do they have a company logo? Are you allowed to modify it?
3. Check Your Future Goals: Signing a deal with the company for just 100 percent commission would not be a good thing if you do not look at the future perspectives of the company. Are you locked in for so many months once you join, or are you able to cancel anytime if you are not happy? If you do leave, can you take your listings with you? Make sure that you check all the details and not only think of today but also look for the future plans for yourselves.
4. Look for Support and Services: It would not be beneficial for you if you do not look for future support and services from your Broker. Do not get lured with the 100 percent commission and sacrifice your future support and services from the firm. How fast do they respond to your questions? What are their hours? Can you get email responses or do you have to wait on hold for long periods of time to speak to a real person? In the long run Services and Support from your Broker would be really beneficial for you.
5. Check for Complaints: Doing some research can save you from big disasters. Have there been any discipline or reprimand records on the state website about the real estate company? Do they have any testimonials? You can also check out the better business bureau to see if there are any complaints. Therefore, it is necessary to do some research check on the real estate brokerage.
6. Look For Hidden Fees: Some real estate brokerages will say they have a 100 percent commission model but will then have hidden fees to your clients, or to you. For example, a broker may charge an additional fee to your client (buyer or seller) such as a $300 transaction fee at closing which you may not notice until you see the closing statement. Or they may charge hidden fees to you (such as Errors and Omission fees). So make sure you ask if there are any other fees to your or to your clients, and if E&O insurance is included.
COMMON MISCONCEPTIONS
ABOUT 100% COMMISSION REAL ESTATE BROKERAGES
100% commission real estate brokerages offer a great way for realtors to keep their entire commission for themselves. But apart from this fact, there is a lot more to know about the 100% commission model. By debunking common misconceptions about it and the brokerage firms using them, you can have a clearer understanding of what it really is and what it is not.
Misconception #1: The 100% commission model is “new.”
This model has only gained popularity with realtors in commercial and residential industries in the last 10 years or so, but it was actually designed many decades ago. Now that newer technologies have been developed, brokerages are more willing and able to implement a 100% commission model effectively for their agents. They can do almost all transactions online, minimizing the office-related overhead.
Misconception #2: You don't really get 100% of your commission.
This is true in a sense, especially if you are using your commission money for paying the monthly or annual membership fees and transaction fees. However, technically speaking, this is a misconception. You get 100% of your commission because there is no split.
Misconception #3: Brokerage firms provide lesser support to real estate agents.
Another common misconception is that brokerage firms charge monthly fees and transaction fees to let you use their names—and provide nothing more. This is only true for opportunistic brokerages that just want to get money from realtors. It’s certainly not true for reputable firms. That's why it is necessary to look into the policies of the agency before signing up. The best ones let you access tools and resources that will help boost your sales. While they function differently from traditional brokerages, they can provide training and assistance to you.
Misconception #4: The 100% commission model is suitable for every realtor.
The growing number of successful agents is one of the reasons why 100% commission brokerage firms became popular. Nevertheless, it is not an option for every realtor. If you are not willing to take initiative and use the educational tools provided to you by your broker, then this model may not be for you. Even if you are new to real estate, if you are willing to put in some time to talk with your broker and figure out how you want to promote yourself, this model will work for you.
WHAT ABOUT YOUR NEEDS?
The idea of buying or selling homes seem incredibly stressful, regardless of whether you’re a first timer or a seasoned veteran.
If you are buying you need decide your budget. Consider how much you’re earning and how much your expenses will be, such as: mortgage, insurance, maintenance, taxes, electricity, HOA, CDD etc. If you are a seller, you need to determine your home’s value based on similar properties in your area and similar upgrades. If you have a unique property this will take more time and research.
You need to understand negotiating power without offending the other party, but at the same time being stern. Off course, you can find a real estate agent who’s willing to do all of the grunt work for you. If you are doing real estate in Florida, whether you are buying or selling a home, make sure you understand the type of relationship you have established with the real estate licensee that you have hired.
Florida is the land of sand, snowbirds — and real estate speculation. Whenever a real estate agent is representing both a seller and a buyer in a real estate transaction, all sorts of conflicts of loyalty and duty arise. After all, the buyer wants to get the property for as low price as he can while the seller wants to sell for the highest sales price offered. Dual agency is jumping right into the middle of that battlefield.
That’s why, Florida has outlawed a real estate agent from acting as the agent for both the seller and the buyer for most transaction types. Also, the amount of commissions is usually dictated by the customs and traditions of the market in the area. The real estate industry is continuously changing, and more agents are willing to negotiate their commissions because of increased competition. But the best answer still is: "Find a real estate company that fit your needs."
