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Why So Many 100% Commission Brokers Go Bust- Bad Cost and Risk Management


The 100% commission broker model in the real estate industry is about the split in the commission from a sale. When an agent works for a large real estate firm, such as Coldwell Banker or ReMax, they share a percentage of the sale's proceeds in return for supplies, office space, and many services. Working for a firm versus being a 100% commission broker means the commission from your property sales gets split between you and the broker. The 100% commission structure means you get all the commission, but you have to be aware of the catches that could lead to you going bust. There is no free lunch as the saying goes.


Bad Costs Are Why Some 100% Commission Agents Go Bust


Some brokerages will charge higher fees than others, which could lead you to pay more than you would through real estate brokers who only take a commission cut. Fees have to be charged to cover what is being lost with getting a smaller part of the commissions. There are also monthly fees, and in some cases an admin fee per settlement, or what is called a transaction fee.


When choosing a brokerage firm to become a 100% commission agent, you want to be aware of these fees and ensure they are not bad costs that will leave you with less than you budgeted for from your commissions. Stanfles Realty offers you a premium 100% commission with a competitive flat transaction fee structure.


Risk Management and the 100% Commission Agent


Fees adding up are not the only reason some 100% commission agents go bust. Not selling properties will also cause your business to fail. Risk management and the 100% commission broker model means you want to choose a brokerage firm that helps you find properties and clients and is willing to help you succeed in your goals. Choosing a firm that offers training and marketing materials will reduce the risk of failure.


Reducing your risk of failure will mean you want to stay away from brokerage firms that don't help you close deals. Some of these firms will take your monthly fees, and since they have no incentive to help close the sale, they let you complete all the details and paperwork on your own.


Reduce Your Risk of Going Bust by being a 100% Commission Agent


STANFLES REALTY offers 100% commission brokers training, and you are charged a highly competitive flat transaction fees structure, so you are able to gauge your budget. Working with us at STANFLES REALTY will mean you have access to corporate branded offices in California as well as to leads from overseas and domestic channels. Reduce your risks and bad costs and work with STANFLES REALTY to make your business a success.


Our Broker has a PhD in Marketing and specializes in Price-Quality Heuristics pricing. He understands the fundamentals of pricing be it for Agent-Broker splits or Property pricing or even client rebates. Stanfles Realty has also a great mentorship program where the broker actually answers calls, guide you through problems and physically assess properties if need be. Join STANFLES REALTY, the true 100% Commission Broker with extensive support and reputation.




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