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The 100-percent commission brokerage sounds like a pipe dream, but the model has been around for decades.. If anything, the 100-percent brokerage is increasing in popularity. Real Trends’ President Steve Murray told Inman, “They are a huge part of the industry; it wouldn’t surprise me if they were getting to be 15 to 25 percent of the industry. They are all over and they are multiplying.”
However, is this model really 100-percent? Most of us have heard the cliché, “nothing in life is truly free.” Brokerages have to make their monies somewhere. After all, brokerages support agents with services like office space, marketing, back office, and deal support. Brokers oversee compliance and ensure the contract closes in accordance with local legislation.
Breaking Apart a 100-Percent Brokerage
So how do 100-percent brokerages cover the costs of providing agents with the necessary physical and technological tools to successfully run a real estate business?
Think about the full commission model like a “á la carte” brokerage. How the different brokerages make up the difference varies, but common methods include one or combinations of:
A flat, fixed monthly fee
An annual fixed fee
A per-transaction fee
The various fees provide the agents access to the various brokerage services, systems, and office access. Some 100-percent models offered tiered pricing plans. Naturally different amenities are available at each level. Others charge a flat fee for basic services and leave the agent to foot the bill for their marketing costs.
When considering working for a full commission brokerage, compare what services come with the fees. Some brokerages under this model might lack the technological tools necessary to adequately be competitive in today’s market. In other cases, adding together the total fees may reveal working for that particular brokerage will cost more than working for a traditional, split-fee brokerage.
Regardless of the financial terms a brokerage offers its agents, all brokerages need to provide value beyond any commission spilt number. These could be training opportunities, in-house software, included integrations with leading data providers, or access to a winning back office team. A competitive compensation package is only part of what attracts and retains real estate agents.
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Do you want to know what are 100% Commission Real Estate Pros and Cons?
Have you thought about going to a split where you earn more money?
100% commission real estate pros and cons begins by comparing them to traditional brokerages.
1) Do the math.
In a traditional real estate brokerage model commissions split from 50% to 80% for the agent depending upon the company.
If an agent earns a $10,000 commission, and the commission split is 50/50, the agent keeps $5,000. In an 80/20 split, the agent keeps $8,000.
With many 100% commission brokerages, a flat per transaction fee may be paid such as $600. In that scenario, the 100% commission agent keeps $9,400. Far better than any of the splits mentioned above.
However, not every 100% commission office charges the same fees. While many use a per transaction fee, others may charge a lower fee but also charge an additional monthly fee (called a desk fee). Some may only charge an annual fee.
Read about different brokerage fees below to better understand 100% commission real estate pros and cons.
2) 100% Commission Real Estate Are Gaining Popularity…
While 100% commission real estate offices have been around for many years, their popularity only recently increased. That’s due to using modern technology with services like DocuSign offering electronically signed (e-signatures) for legal documents. To read about the 10 top e-signature apps on the market Click Here.
Removing the required paperwork outside of the real estate office changed the real estate industry. This enabled real estate agents greater independence without relying on typical office infrastructures and support.
Modern technology provides real estate agents with independence making 100% commission brokerages popular.
3) MLS Data Exclusivity
Up until only a few years ago, MLS data was only available through member offices.
Now, much of the MLS data can be accessed from private websites. Buyers and sellers also access MLS data easier online nowadays.
100% commission real estate pros and cons includes public access to MLS data making traditional real estate brokers MLS monopoly obsolete.
4) Work at Home Popularity
100% commission real estate pros and cons must consider the rising popularity of 100% commission agents. Two important reasons for the work at home popularity:
Offices are no longer needed for meeting clients.
Online access exists for all of the essential tools required by agents.
Should agents contribute a large portion of their commissions for office related overhead they no longer need?
How 100% Real Estate Brokerages Differ
A 100% commission realty also requires looking at what individual brokerages offer. Some 100% companies provide more benefits than others.
Consider these pros and cons when deciding to join a 100% commission real estate brokerage:
Real estate markets constantly change. Over the years, some markets experience fast growth while others slide into a downturn. Then, the climate changes making some markets hotter than others.
Today’s hottest property markets may turn cold tomorrow. The ability for a real estate brokerage to weather the storm during downturn times matters.
According to a recent report, many new real estate companies close within two years. Others keep floating through the good and bad times.
Will the 100% commission brokerage you think of joining provide stability?
100% commission real estate pros and cons also consider costs.
As explained above, not every 100% commission real estate broker charges the same fees. The three most popular fees include:
Flat Fee per Closing;
Monthly “Desk” Fee; and
Each option has its pros and cons dependent on the agent’s production level.
Do the math based on your past year’s commissions compared to each broker’s fee structure above. Then, you will know which option works best for you.
3. Hidden Fees
100% commission real estate pros and cons also consider hidden fees.
Here is where the biggest difference between realty brokerages shows. The hidden fees need to be explained before jumping ship from one brokerage to another. Typically hidden fees include:
File Review Fee
Do the math. Add up what each 100% brokerage charges you as additional fees.
Also mentioned above, is the fact that new real estate brokerages often close within two years. Many startups don’t take into consideration all of the overhead costs compared to the income. Shortfalls occur and reserves dry up leaving the broker with no alternative than to close the doors.
Inquire about the history of the brokerage to determine whether they withstood the bad market times along with the good ones.
Stability over a long period of time counts heavily towards predicting future success.
How popular is the broker? Does he or she maintain a good professional reputation? Consider what achievements, professional certifications, honors, and community recognition the broker possesses.
What does the local media say about the broker? How about social media reputation?
Look towards the future. Will this broker lead you towards innovation, keep up with modern technology and lead you into a successful future?
Errors & Omissions Insurance (E&O) coverage for the brokerage and its agents is mandatory. But, not every insurance policy provides the same benefits. Consider what the brokerage insurance policy includes such as:
Coverages (What is Covered)
All Other Perils (AOP) Coverage
Did the broker obtain minimum coverage or spend a little more for an “A” Rated Insurance Policy?
Look for ultimate protection in case of a lawsuit. Seek high coverage and low deductibles. Obtain All-Inclusive Coverage with Quality Representation.
Some 100% commission brokers just collect checks and do nothing else. An inaccessible broker provides the agents no favors.
Inexperienced brokers don’t know how to provide support to their agents. California licensing laws don’t require highly experienced brokers.
Look into the amount and quality of accessibility and support the brokerage gives to its agents.
The infrastructure of a modern brokerage determines the efficiency of conducting business. Having to email your contracts to your broker should frighten you.
Learning what modern technology tools your broker provides indicates whether the brokerage supports your growth.
9. Strategic Partners
Brokerages often partner with service providers and suppliers in order to control costs.
Expect the best services and products. Don’t rely on a company who won a bidding war to get the service provider contract from your broker.
Don’t let the bottom line reduce you and your clients’ needs.
10. Brand Name
Join a 100% brokerage with a good brand name. Never get caught meeting a new client who questions the legitimacy of your realty company.
Do you want to associate with a “Z” realty company or an “A” brand name image that consumers like and trust?
Don’t be afraid of small companies. Boutique brokerages achieve success due to the marketing of their brand name and reputation. Brand marketing allows small companies to thrive based on their excellent reputation.
Why Join a 100% Commission Real Estate Brokerage?
100% Commission Real Estate Pros and Cons explained here lead to one conclusion.
Earn more money by associating with a 100% commission brokerage offering:
Brand Name Recognition
Steven Rich, MBA – Guest Blogger
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We hope you liked our blog on “100% Commission Real Estate Pros and Cons”. For more local real estate related articles check out one of our many blog pages here.
What is the 100% Commission Real Estate Broker Model?
Making more money on every real estate transaction is possible. So what is the 100% Commission Real Estate Broker Model?
New real estate agents and clients often ask, “What is the 100% commission real estate broker model?”
When explaining this business model there may be words or phrases you may not understand so many of them are highlighted so you can click on them to read their definitions.
Traditional real estate brokerages pay their agents a percentage of the total commissions where in some cases the majority goes to the real estate office. However, the national average commission percentage “splits” are evenly divided (50/50) between the real estate broker (office) and the agent.
But there is another option.
Explore 100% Commission Model
The 100% commission model has become very popular in the last decade.
In this model, the agent gets 100% of the entire commission. What’s the catch?
There is none at Big Block Realty.
When you join Big Block Realty, you pay a monthly fee of $300, or up-front annual fee of $3,000. In return, the agent has access to 100% free training, open work areas in 1 of four office locations, and 100% support.
Plus, we offer a referral program that allows you to refer new agents to Big Block Realty that not only includes the 5 and it’s free benefit (refer 5 new agents that sign up with us and your monthly/annual fee is waived), but you are entered into an annual drawing for a new Mercedes-Benz.
All 100% commission models are not created equally.
For example, other 100% commission brokerages may charge the agent $1,000 a month or more for a desk space and monthly amenities, without any training and support, nor do they have a referral program as an added incentive.
How does 100% commissions compare to traditional commissions?
Since the national average is 50/50, let’s compare the 50% commission with a 100% commission model.
Assume that the total sales commission is $20,000. With a 50/50 split the broker gets $10,000 and the agent receives $10,000. However, with a 100% commission model, the agent gets the entire $20,000 commission.
Assuming the agent pays $12,000 a year for the office fees; the agent profits $8,000 for the year. The more earned commissions during the same year, the greater income for the 100% commission agent.
There are different types of 100% commission models
Some real estate companies don’t provide support services or office amenities. However, they do charge their 100% commission agents discounts with lower monthly fees or a flat “per transaction” fee for each sale. For instance, with no desk and no office privileges, the agent may be charged a monthly $100 fee.
As an alternative to a monthly fee, a flat fee (like $750) is charged for each sale generating a commission.
Using the example above, a $20,000 commission goes to the 100% commission agent who merely pays a small monthly fee ($1,200 annually) resulting in a profit of $18,800. Or, the $750 flat fee is paid to the broker resulting in the agent receiving $19,250.
The 100% commission real estate broker model has become popular with successful agents.
New agents may be better off under traditional commission structures until earning a steady flow of commissions. Then, the 100% commission model makes sense because after paying annual fees to a broker (or, “per transaction” fees) all earned commissions above those costs creates higher income for the agent.
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Have questions about how you can join our 100% brokerage?
Fill out the form here: 100 Commission California Real Estate Brokerage
Our 100% commission broker and real estate agents and brokers in Los Angeles are some of the most successful agents in the city and county. Capitalizing on modern technology, they work from home, one of our 1200+ worldwide affiliate office locations, or any other remote location of their choosing. Utilizing our cutting edge Agent Portal™ and transaction management platform, they maintain access to 24/7 broker support, training, marketing, and countless other tools while benefiting from the savings of a 100% commission split.
Los Angeles County, established in 1850, is one of California's original counties. With a population of just under 10 million, it is California's most populated county and is more populous than 42 individual U.S. States. Los Angeles County's largest city is Los Angeles, which is also the second-largest city in the United States. Los Angeles County covers an area just over 4,000 square miles of land, just under 700 square miles of water, and includes two offshore islands, Santa Catalina Island and San Clemente Island. Over twenty-five percent of California residents are located in Los Angeles County, which includes 88 incorporated cities and numerous unincorporated areas. Los Angeles County is well known for its ties to the entertainment industry, and is home to many major recording and film studios, including Walt Disney, Paramount Pictures, 20th Century Fox, and Warner Bros. Los Angeles County is also a large hub for international trade, through the Port of Los Angeles, and supports other major industries such as law and medicine. With a strong economy, diverse demographic, and a homeownership rate of almost 48 percent, Los Angeles is a great place to be if you are a REALTOR®...and even better if you are a REALTOR® earning 100% commission.
Selling real estate in Los Angeles can be a very exciting, rewarding, and prestigious profession. Many well known real estate reality shows are based in Los Angeles, including the HGTV show "Selling L.A.". With property values ranging from under $100k to over $100M, Los Angeles real estate agents and brokers have unlimited growth potential, and many Los Angles County REALTOR® earn six to seven figure incomes! Over the past few years, however, a large number of Los Angeles County real estate agents and brokers have grown tired of the high company fees and commission splits they deal with when working at traditional brokerages, and have chosen to take advantage of our comprehensive 100% commission plans.
100 commission broker Los Angeles Stanfles Realty is home to many 100% commission Los Angeles real estate agents and brokers in Augora Hills, Alhambra, Arcadia, Artesia, Avalon, Azusa, Baldwin Park, Bell, Bell Gardens, Bellflower, Beverly Hills, Bradbury, Burbank, Calabasas, Carson, Cerritos, Claremont, Commerce, Compton, Covina, Cudahy, Culver City, Diamond Bar, Downey, Duarte, El Monte, El Segundo, Gardena, Glendale, Glendora, Hawaiian Gardens, Hawthorne, Hermosa Beach, Hidden Hills, Huntington Park, Industry, Inglewood, Irwindale, La Canada Flintridge, La Habra Heights, La Mirada, La Puente, La Verne, Lakewood, Lancaster, Lawndale, Lomita, Long Beach, Los Angeles, Lynwood, Malibu, Manhattan Beach, Maywood, Monrovia, Montebello, Monterey Park, Norwalk, Palmdale, Palos Verdes Estates, Paramount, Pasadena, Pico Rivera, Pomona, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Rosemead, San Dimas, San Fernando, San Gabriel, San Marino, Santa Clarita, Santa Fe Springs, Santa Monica, Sierra Madre, Signal Hill, South El Monte, South Gate, South Pasadena, Temple City, Torrance, Vernon, Walnut, West Covina, West Hollywood, Westlake Village, and Whittier.
If you are looking for a 100% commission real estate broker in Los Angeles, Stanfles Realty is the brokerage for you! All of our Los Angeles real estate agents and brokers are enjoying our 100% commission plans, and most are literally saving tens of thousands of dollars a year in commissions. In addition to Stanfles Realty 100% commission plans, we offer 24/7 broker support, training, leads, turnkey marketing campaigns, IDX websites, in-house escrow and transaction coordinating, lifelong residual income for recruiting other agents, MLS access throughout the state, and much more! At Stanfles Realty , our 100% commission plans barley scratch the surface of all we have to offer.
For more information about becoming a 100% commission Los Angeles Realtor with Stanfles Realty please contact us for a quick response from one of our brokers. Give yourself a raise, start earning 100% commission today!
If you are a real estate agent in California, then you have undoubtedly heard the term 100% commission and have been approached by different brokerages to join with them. Stanfles Realty. is one of the very few real estate brokerages in California that not only offers the flat fee 100% commission structure to agents, but also gives superior broker support to enable real estate agents to successfully bring more sales to completion. No hidden fees, or tricky terms & conditions, we offer a $494 Flat Fee Commission along with industry’s best agent support.
Real estate agents are presented with more choices in the open market, therefore, Stanfles Realty. has tracked the increased trend of agents who are going with a 100% commission brokerage with a $494 broker fee over other commission plans with other 100% Commission Real Estate Companies. Stanfles Realty.’s commission offering was planned specifically to allow more real estate agents in California to make money and keep more of their hard earned commission rather than worry about how the brokerage is dividing the commission and varying fees of each transaction. Not only is this a competitive commission split, it’s also fair and has received industry wide recognition as an extremely profitable one for all agents involved. Be aware in doing your due diligence of other real estate brokerage, as their 100% commission package may be riddled with hidden fees and overage costs that are passed through to the agents’ commission. Real Estate Source’s 100% commission real estate brokerage with a $494 flat fee and is as transparent as it gets.
In order to better understand their value for California real estate agents, one only needs to look as far as the provided support from the brokerage firm at Stanfles Realty. Agents all recognize that it is not just about the commission package, but the overall brokerage/agent experience and business relationship that goes a long way to having a partnership in success. As the existing agents with Stanfles Realty. have already experienced, when new agent joins the 100% commission plan, they are joining an elite group of California real estate agents. This is what makes this partnership for successful work. No other brokerage in California has dedicated broker support for their agents like Stanfles Realty. provides. Whenever there is an issue with a transaction, the broker is there for you every step of the way to resolve any issues you may have on your transactions.
"We think Stanfles Realty. (is the best *100% commission real estate broker California*)"
For transparency purposes, the 100% commission plan is described as a compensation plan where the agents receive 100% commission on a transaction and only the flat fee of $494. 100% commission does not mean that the agents receive 100% of the gross commission. This is the sort of fine print that many real estate brokerage firms do not disclose to potential agents. The term 100% commission is correlated to the transactional exchange where the full commission monies are paid out after the $494 flat fee is deducted. In essence, this is the flat fee commission structure of a real estate company.
One of the other business advantages that sets Stanfles Realty. apart from other brokerages & Real Estate firms in California is that we offer a full escrow that helps our 100% commission plan agents close more deals.
In summary, it is a combination of commercial mortgage offerings, full agent support both pre and post sales as well as the industry leading flat fee 100% commission plan which garners many agents attention when they decide to join with a California real estate brokerage firm. Understanding the competitive nature of brokerage firms in California, Stanfles Realty. has taken it upon themselves to be as transparent as possible while providing the utmost support to all of its agents.
Contact us today to see if Stanfles Realty. would be a good fit for your real estate business plan and ask us about our world class support and 100% commission plan with the $494 flat fee deduction. They understand that to be successful, your business will drive their success. Call them at 888-863-2820 x 3 or Learn How To Join.