Earn 100% Commission with Big Block Realty.

100 percent commission real estate brokerages have been around for a long time.  In fact, in 1965 the very first 100 percent commission real estate brokerage opened in Arizona.

Since then, 100% commission real estate brokers operate in all 50 states. However, not everyone fully pays 100%. That’s because hidden fees typically eat up the 100% reducing it down to as low as 50% in some cases.

Don’t be fooled by advertisements claiming 100% commissions. Dig deeper into the full commission payment model to see whether total commissions paid amount to 100 percent.

 

Hidden Fees

 

The first place to investigate 100% commission models begins with the hidden fees.

Such as:

 

Startup Fee

 

Some real estate brokerages require the payment of a “startup” fee when joining. The startup fee may range from $100 up to $500.

What do you get for paying a startup fee? Basically, it’s similar to a private club initial membership fee. The privilege of joining the club requires paying a membership fee.

Ask yourself, “Is this real estate company so prestigious to justify paying a startup fee?”

 

Monthly Fees

 

Some 100% commission brokerages charge a monthly or quarterly fee to remain in good standing. Often referred to as a “desk fee”.

Look at paying a monthly (or quarterly) fee the same as rent. In lieu of paying rent, what does the broker provide you as an agent? Does it include swanky offices and amenities like a private parking space, or a large private office? Or, do you get to sit in a small desk surrounded by 100 other agents in a huge room?

Bear in mind that real estate brokerages pay a lot of overhead to stay open. Office rent, electricity, landline phones, support staff wages, advertisements, janitor or cleaning company expenses, etc.

As the old saying goes, “You get what you pay for”. Is the $100 to $500 a month fee worth it? Ask yourself, “What do I get for the monthly fee?”

Many 100% commission brokers provide private client meeting rooms along with other office amenities like receptionist, support staff, copy machines, computers, and other essential office equipment. All for no additional costs.

 

Document Storage Fees

 

Some brokerages charge $100 a month or more as “document storage” fees. What does “document storage” entail?   

Originally, called “records storage” before “digital files” became popular. Real estate offices needed to safeguard and properly store all legal documents and transaction paperwork for many years. Original documents needed to be produced for tax and licensing audits. Protection against theft, fires, flooding, earthquakes, and wear & tear required expensive storage facilities.    

In today’s digital age, more and more legal documents and transaction files are produced, signed, and preserved as electronic “digital” files. While saving money by not having to physically store and preserve paper documents, digital files require protection too. Files stored in central based computers are subject to hackers and cyber-theft.

Moving away from in-office central-based computer systems to store digital files, many brokerages use outside “online document storage” systems. An entire industry called “Electronic Document Security and Management” systems emerged to store and protect digital files from hackers and cyber-theft. Cloud companies provide digital storage and protection for outside companies.

Such outside service providers cost money. Brokerages need to pay them on a regular basis. Thus, many brokerages justify their “document storage” fee.

The question you need to ask is “How much does the brokerage really pay for digital storage?”

Anything above that fee paid by the agents’ amounts to a “junk fee”.

 

Transaction Fees

 

Every real estate transaction generates lots of legal documents and paperwork. Whether produced and stored in hard copy format or by digital files, transactions require lots of time.

Does every 100% commission agent spend the necessary time to produce all of the paperwork, review them for accuracy, obtain required signatures, and get them to the escrow officer? Probably not.

Therefore, real estate brokerages justify charging transaction fees to their 100% commission agents. However, what is a fair transaction fee? Clearly, an automatic monthly transaction fee when no sales occur would be too costly to the agent. Therefore, the concept of a “per transaction” fee makes sense. 

Most 100% commission brokers do not include an in-house Transaction Coordinator (TC) to prepare documents, collect signatures, review for accuracy, and coordinate all documents with the escrow company for smoother closings. However, other brokerages do include an in-house TC or a pay per transaction private TC for their agents.

Ask, “How much does a typical transaction cost the brokerage?” Anything above that amount constitutes another “junk fee”.

 

E&O Insurance

 

In this lawsuit happy society, obtaining strong Errors & Omissions Insurance (E&O) coverage is essential.

For example, in August of 2018 a Florida jury awarded over $1.8 million to a real estate buyer claiming two real estate brokers defrauded him.

Additionally in June of 2018, the California Court of Appeals affirmed a jury’s award of $571,000 against a real estate agent for negligence. The California real estate agent negligently measured the square footage of real property stating it was 4,500 instead of the actual 3,036 square feet. The buyer purchased the property and later found the true square footage and successfully sued the agent and the brokerage.

Some brokerages charge a separate fee to their 100% commission agents for the required E&O insurance. Others automatically include it in their 100% commission plan.

 

What Does Big Block Realty Offer 100% Commission Agents?

 

Earn 100% Commission with Big Block Realty.

Great Training! We provide a variety of training courses including Sales, Contracts and Compliance, Team Building, along with Internet Marketing courses. Want to know more about our Real Estate Training courses? Just Click Here

We provide Excellent Support! From Broker Support to Attorney Support, and even an Agent Concierge to help with your legal questions, and contracts or compliance issues. Learn more about our support, just Click Here

We provide Multiple Office Locations offering office space, conference rooms, receptionist, Free WIFI, and Free printing.

We Offer a Flat $3,000 per year fee for our 100% commission plan. Includes two monthly payment plans as options. Need more information? Just Click Here

Our E&O Insurance fee is only $185 per transaction. This saves you money by not making you pay a yearly fee for few transactions.

No hidden fees, no junk fees, just essential reasonable fees for services provided.

 

Compare 100% Commission Real Estate Brokerages

Compare our 100% Commission Plans, Reasonable Fees, Agent Support, and Training with all the others.

Earn 100% Commission with Big Block Realty.

You’ll see why over 800 agents believe in us!

 

Steven Rich, MBA – Guest Blogger

 

Want to know more about San Diego real estate? Click to talk to a local Real Estate Pro

 

 

We hope you liked our blog “Earn 100% Commission with Big Block Realty”. For more local real estate related articles check out one of our many blog pages here.

 

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Big Block Realty – 100% Commission Real Estate Brokerage