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100% Commission In Real Estate<\/h1>\n

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You may have heard or found out about the expression “100% commission” with regard to real estate. It has to do with the commission split an agent makes who is selling or listing a property. Commonly, realtors work for a huge firm, for example, ReMax or Coldwell Banker, which give office space, supplies, administrations, and more in return for contribution and a split of the commission. In other words, that 2.5% or 3% commission doesn\u2019t all go to the agent. Instead, a portion goes to the broker(age) for providing support along the way.<\/p>\n

Real Estate Agents Get 100% of Commission, But There\u2019s a Catch<\/h2>\n

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• This less common commission structure<\/li>\n
• Means the agent technically gets all their commission<\/li>\n
• But there\u2019s often a monthly fee that must be paid<\/li>\n
• Plus a transaction fee per settlement that effectively eats into the commission<\/li>\n<\/ul>\n

  With 100% commission programs, as you may speculate, realtors get 100% of the commission. There is no part split between the real estate organization and the agent. However, 100% commission brokerages typically charge higher fees than real estate brokers who take a cut. Obviously brokers aren\u2019t going to give money away. And with no commission being earned, they have to make up for it somewhere. That\u2019s where the fees come in. Most of the 100% commission brokers charge a hefty monthly fee plus an admin fee or flat fee per settlement known as a \u201ctransaction fee.\u201d One popular 100% commission shop by the name of HomeSmart also charges a \u201cRisk Reduction Fee\u201d for each transaction. These fees can add up, especially if you aren\u2019t selling anything. Before you know it, you\u2019ll have paid 12 months of monthly fees and simply spun your wheels. Also note that 100% commission brokerages may limit the amount of resources and training you\u2019d typically get with a full-scale broker or real estate company. While this may not be important to some, if you\u2019re new and inexperienced, it might be wise to start with a larger company that provides plenty of marketing materials and training to get the ball rolling.<\/p>\n

  You Might Get Less Support with the 100% Commission Guys<\/h2>\n

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  • If you\u2019re earning 100% commission<\/li>\n
  • You might be going it alone with limited or no support<\/li>\n
  • Yet still paying in the end<\/li>\n
  • Or getting caught up in other hoops like quotas<\/li>\n<\/ul>\n

    If the company is getting a monthly fee from your regardless of what you do, there\u2019s less incentive to push you to sell. Of course, they\u2019ll want to keep you around for as long as possible to keep collecting that passive, recurring income. It should be noted that 100% commission shops are becoming more common these days, and many are providing more services to their agents. Thanks to technology, these companies can offer a lot more without breaking the bank. Just be wary of more fees to accompany the new offerings. Also watch out for other tricks by 100% commission brokers such as quotas that need to be filled. They may say they are \u201c100% commission\u201d but if you read the fine print, you actually need to sell \u201cX\u201d amount of houses or fund \u201cY\u201d amount of loans before it becomes an actual 100% split.<\/p>\n

    Remember, nothing is free, and if a company gives up money in one area, they surely plan to make up for it somewhere else. Be sure you read the entire contract and understand exactly how the system works before joining up with a new broker or real estate company. Established real estate veterans may do well with a 100% commission program, whereas newbies may want to stick with a well-known brand to get started. Every situation is different, so take the time to do the research before diving in.<\/p>\n

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