Before choosing a real estate brokerage, real estate agents should consider what 100% commission broker support they will get.

 

KEY TAKEAWAYS

• Learn how to understand 100% commission models.
• How traditional commissions compare to 100% commissions.
• Learn why and how 100% commission brokerages charge different fees.
• How important is training and support to an agent?
• Why continuing education courses are important.
• How Big Block Realty’s six-course topics make you a better Realtor.

How to Understand the 100% Commission Real Estate Broker Model

 

Commission-based work creates stress, especially in a competitive real estate industry. Sell or go broke. No paychecks, wages, overtime, or disability funds for struggling agents.

In California, according to the CA Realty Training company. the typical agent/broker commission split is 60/40 in the agent’s favor.

Thus, the California 100% commission model begins with comparing the typical 60/40 commission split with a 100% commission.

 

Traditional California Commission versus the 100% Commission

 

Let’s compare the traditional split with the 100% commission.

For example, let’s compare a $10,000 sales commission transaction. Under the traditional 60/40 split, the agent gets $6,000 and the broker gets $4,000.

The 100% commission structure gives the agent the full $10,000. That’s a $4,000 gain.

This means the agent earns a higher profit. Yet, every 100% commission brokerage gets to charge the agent fees such as:

• Annual association fee;
• Desk fee;
• Administrative transaction fee for each deal; and
• Errors & Omissions (E&O) insurance fee for each transaction.

Note: Some brokerages add more fees.

 

Let’s say the agent associated with Big Block Realty in San Diego County. Big Block charges fully transparent fees (no hidden fees) for every transaction including:

• Annual association fee of $3,000 paid once a year (or $300 a month or $50 per month plans explained below);
• $125 per transaction administrative fee; and
• $185 E&O per transaction fee.

 

See the Difference with the 100% Commission Model

 

Let’s say during the year you sell 10 homes earning $10,000 per sale. That’s a total of $100,000.

Big Block’s fees during the year and for the 10 transactions totals:

• $3,000 annual association fee (paid once a year);
• $1,250 for 10 transactions administrative fee;
• $1,650 for 10 transactions E&O fee; and
• Totaling $5,900.

Thus, you keep $94,100 profit for the year.

Sound good to you?

 

Why 100% Commission Brokerages Charge Different Fees

 

As noted above, not all 100% brokerages charge the same fees.

Some brokerages simply charge a monthly or annual desk fee, but with no training or office support to their agents. This keeps their expenses down.

Yet, by law, the broker is held liable (along with the agent) if errors, omissions, or negligence occurs during a transaction leading to legal liabilities and lawsuits. How does the broker include the E&O fee? Usually, it becomes a “hidden fee” within the desk fee or a flat transaction fee (not itemized).

Even worst, is when the broker fails to mention the “hidden fees” while recruiting the agent and then slips them into the brokerage association agreement. Kind of like the fine print in a used car purchase contract.

 

How Important is Training and Support to an Agent?

 

Like licensed attorneys and other professionals, some states require annual Continuing Education courses to maintain their professional licenses. How helpful they are, depends on the course title, instructor, length of time, and course materials.

In the states not requiring agents to attend annual courses no continuing education occurs.

Why are continuing education courses important?

Real estate laws, regulations, and rules change depending on court rulings, new laws, and state licensing agencies’ new rules.

 

Here is an Example of Why Keeping Up with the Laws Can Save You Money

 

In January 2022 Zillow was ordered by a California Appeals Court to pay $1.9 million for copyright violations. The lawsuit was filed by a photographer against Zillow for using his copyrighted images on its website. The original court judgment was for $9 million, but the appeals court reduced it to $1.9 million which Zillow paid.

Read about it in our recent post titled: “How To Avoid Paying $1.9 Million Copyright Violations Like Zillow”.

Beware: Real estate agents copy and paste images from websites all the time. These online images are all copyrighted. Yet, agents copy them for their websites and blogs, and promotions. Just like Zillow did.

Don’t worry, our blog post above explains a legal loophole written in the U.S. Copyright Law allowing “Fair Use” of copyrighted content and images. However, you must follow the directions about posting certain wordage next to the image to become protected. Even more reasons or reading our recent post.

You should take the time to read all our blog posts to learn about new laws, recent marketing trends, and new niches.

 

Our Big Block Realty Training Courses

 

Our free training courses focus on impact to bolster your career for greater profits. The courses include:

1. Marketing;
2. Sales Skills;
3. Social Media;
4. Legal;
5. Contracts; and
6. Team Building.

 

How can these six-course topics make you a better Realtor?

These six-course training topics combine to give you the tools and skills to become:

1. Better self-promoters;
2. Improved salesmanship skills;
3. Effective social media influencers;
4. Excellent contract writers;
5. Keeping up with real estate laws; and
6. Learning how to build and work with team members.

 

Types of Broker Support Big Block Realty Offers

 

Besides free training courses, we offer broker support in these ways:

Agent Concierge: Like a reliable hotel concierge our concierge is available to help our Realtors by answering quick questions to making lunch or dinner reservations. You will receive a free 1-800 phone number to call our concierge to make your life easier;

Transaction Support: You will never feel alone during a transaction. Our real estate experts are available to help you towards a successful closing. He can help you with filling out contracts to collecting your 100% commission check;

Marketing and Lead Generation Support: Our mega marketing experts can help you with generating leads;

Social Media and Technology Support: Our social media and online experts can help you to grow your business; and

Broker/Attorney Support: Our broker is a licensed California attorney who can help you with any legal issues arising during your transactions. How many brokerages provide instant real estate attorney support when you need it?

 

Here is our Big Block Realty Transparent Commission Plans

 

We make our 100% commission structure uncomplicated and very simple. Here are the three ways to pay:

• As mentioned above, our Realtors can pay a one-time annual fee of $3,000; or
• $300 a month (total of $3,600 per year); or
• $50 per month where your first three commission checks per year are deducted $1,200 each. This totals $600 ($50 x 12 months) plus the $3,600 deductions = $4,200 per year.

 

As you can see, our three 100% commission plans offer something different depending on your budget.

 

100% Commission Broker Support – Conclusion

 

We explained the importance of 100% commission broker support. Not every real estate brokerage offers their agents support. Some cut costs by charging a desk fee with no support.

We explained how some brokerages charge transparent feen while others keep some of them hidden.

The importance for training and support by your brokerage is essential to increase your commissions.

Continuing education can keep you out of legal problems. Plus, having a broker who is a licensed real estate attorney can assist you during transactions with contract writing and answering legal questions.

 

Interested in Joining a San Diego 100% Commission Brokerage?

 

Join Us along with over 985 other San Diego area Realtors as we offer complete transparent 100% Commission Plans with no hidden fees.

We also include Free:

• Training Courses;
• Broker/Attorney Support; and
• Agent Concierge Services.

 

 

Steven Rich, MBA – Guest Blogger

 

 

HAVE ANY QUESTIONS?

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Call: (800) 550 – 3209

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Big Block Realty – 100% Commission Real Estate Brokerage