If you’re currently in the real estate market to buy or sell your property, chances are that you’ll work with agents (not directly with brokers). But do you know how these agents could benefit from the transaction of your property? Well, today, most real estate agents always get paid through commissions. Interestingly, these commissions often come as a percentage of your property’s selling price. The latest commission model that agents enjoy today is known as the 100% commission real estate broker model.
What exactly is a 100% commission real estate broker model? What are the tips and tricks to find a 100% commission broker in California? You’ll get answers to these questions in the next sections of this blog.
Understanding the term “100% Commission Real Estate Broker”
The 100% commission broker in California is the latest commission model used to pay real estate agents today. Unfortunately, this model isn’t the same for all brokers.
As earlier mentioned, real estate agents in California often get paid through commission, which is usually a percentage of the total commission. Traditionally, the commission usually comes as a 50/50 model, where the agent takes half of the proceeds from the sale of a property, leaving the broker with the rest. Of course, there are several other commission models, depending on the agreement between the agent and the broker.
The latest model, which is known as a “100% commission real estate broker,” allows real estate agents to get 100 percent commission on every real estate transaction they perform. While this new model is amazing, you need to understand that it also has its issues.
- First, since real estate agents get all the proceeds from the sale of a property, there’s no profit for brokers to enjoy. So, the question is, how exactly do brokers get enough money to run their facility? In most cases, a 100% commission often comes with little to no in-office support for the agent.
- Some brokers often add hidden fees to ensure they get something out of the 100% commission earned by their real estate agents. This is another common problem with this new-age commission model.
Factors to consider when finding the best 100% commission real estate broker
As a newly licensed real agent, before opting for a 100% commission real estate company, you need to consider a few factors:
- Hidden fees
Only a few brokers, such as Real Estate Source, offer a 100% commission real estate structure with transparency. Yes, most brokers out there often ask for hidden fees of different types. The most common hidden fees you might encounter when you fail to do your due diligence are:
- Technology fees
- Yearly fees
- In-office desk fees
- Compliance fees
- Closing transaction fees
The bottom line is that you need to do your due diligence before opting for a 100% commission broker split. Make sure to check and be sure there are no hidden charges. Even if there are any additional charges, make sure you know about them and be sure you’re fine with them. Our advice, however, is that you should avoid brokers that offer 100% commission with hidden charges.
- Is there any in-house support, leads, or referrals?
This commission model supports that real agents must take 100 percent of their profit on the sale of a property. Because of this reason, most brokers often avoid providing in-house support which could up the cost of running their facility.
At Real Estate Source, we often provide our real estate agents with much-needed support, leads, and sometimes referrals. We also offer different types of mortgage products to help you close more transactions.
- Good brand matters
Does the broker you’re looking to win with have a good brand? Does it have a well-designed website?
Since your new clients will need something to engage, owning a properly designed website surely matters to engage them, including the potential clients.
