You may think all 100% commission brokerages are the same. Well, they’re not.
Today, numerous 100% commission brokerages have risen, some are good, some are not. The 100% commission real estate brokerage trend is now well-established, even many large enterprises have been seen offering 100% commission structures.
But are they all the same?
Not at all. For real estate agents considering which brokers to work with, it’s crucial to understand that not all 100% commission brokerages are equal – in fact, they can be very different.
Without a doubt, 100% transaction based model is an attractive option for obvious financial reasons. Culture, service, hidden fees, and so much more need to be factors to consider when looking int 100% commission brokerages. Let’s look at some key factors.
The real estate industry looks at results in the following ways;
- Transaction volume
- Number of Agents
- Sales volume
While considering which 100% commission brokerage to do business with, here are few factors that differentiate 100% commission brokerages you ought to consider.
Hidden charges are one of the crucial issues to consider. Some 100% commission brokerages net their agent close to 100% commission. This worst marketing trick is an exorbitant “per transaction fee.” For instance, if a real estate agent earns $5,000 commission check and pays the broker $2000 – that is 40% commission! Be sure you ask the right questions when it comes to hidden fees. At Big Block Realty, there are no hidden fees. Our plans are straightforward, flat fee based either monthly or annually.
Cost of E&O Insurance
An agent should know whether their broker carries E&O Insurance and the Insurance cost to the real estate agent. Many brokers are “Self Insured” or have the “Deal with it as it happens” approach. The main issue is E&O Insurance is an indispensable necessity in this industry. Real estate agents are doing more damage to their customers by not being adequately insured. If your broker is going to make you pay for any portion of this cost, it should be disclosed to you up front.
On-Site Transaction Coordinator
Transaction Coordinators are essential to any real estate agent considering affiliation with a 100% commission brokerage. A reputable brokerage you are considering will have a preferred, or In-House Transaction Coordinator. This implies a Transaction Coordinator that ONLY works for that particular broker and its agents. Many brokerages have a “Contract” Transaction Coordinator or don’t have any at all. If the broker has a “Contract” Transaction Coordinator, agents should consider whether or not they will receive the same exceptional value as the agents who produce more. It’s a smart decision to join a brokerage with a real In-House Transaction Coordinator.
Culture & Atmosphere
It is great to know the numbers of administrative assistant the brokerage has that will enable agents to understand the level of support they should hope to get and if the business is growing. But more importantly is the culture you are going to be a part of. Many 100 commission brokerages only offer small desks for a fee or you strictly work out of your home. We have even heard many agents say they worry about joining 100 commission brokerage because of the lack of support, no conference spaces or printing, marketing support or training.
That is true for many 100 commission brokerages, but not Big Block Realty. Be sure you get to know what the culture of the brokerage is, what the core values are, and find out how long their staff has been with them. This is a sign of a great company when turnover is low. Consider whether you want a vibrant fun atmosphere that is modern and tech savvy like Big Block Realty, or something more traditional and dry. You want to love where you go for meetings, feel that sense of pride, and feel like you are part of a team, not a solo agent being thrown to the wolves just because your broker is 100 commission based structure. With Big Block, you never have to worry about that.
Number of Closed Transaction
What is the number of transactions the brokerage successfully closed? The number of closed sales helps to measure the quality of agents this brokerage attracts. If the brokerage has attracted more than 500 agents but only close less than 100 deals every year, would you like to work with such broker? Numerous 100% commission brokerages take in just any licensed agent available, paying little regards to lawsuits, experience, closings, and so on.
As a real estate agent trying to find 100% commission brokerages which offer high-value benefits at the least cost, do your research and be cautious. The best way to have a near 100% commission split is to join brokerages with a little monthly charge. Not All 100% Brokerages are equal, many brokerages that promise 100% commission collected doubles through hidden charges. Brokerages loaded with the exorbitant transaction or monthly fees are rarely anywhere near 100% commission.
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The Big Block Realty Team
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