What is 100% Commission?
In recent years many companies have jumped on the 100% Commission band wagon. This model has been around since the 70’s, however it has become increasingly popular due to technological advances and industry changes.
Brokers and aspiring entrepreneurs often gravitate towards this model as they see it as a way to earn a quick and easy income while providing little to no value to the agents (i.e. A license mill). However, this could not be further from the truth. As evidenced by the continuing trend of new companies entering the space and only lasting 1-2 years, it is apparent that agents care about more than who is the cheapest broker.
What to look for in a 100% Commission Brokerage
The market makes sudden and drastic changes on a cyclical basis. Warren Buffett famously said “You only find out who is swimming naked once the tide goes out”. When times become tough, and they always do, is your broker adequately positioned to weather the storm?
The Realty Source Difference: We do not believe in elaborate expenditures to look important on social media like many of our competitors. We are financially prepared to whether any changes in the market and to take advantage of any opportunities available that can help our agents become more successful.
Not all 100% Commission brokers are created equal. Compensation packages are typically structured in 3 different ways:
– Monthly Fee
– Flat Fee Per Closing
– Yearly Fee
While each option has its pros and cons depending on one’s level of production, there is a large difference in how 100% Commission brokers structure their fees.
The Realty Source Difference: Our fees are the lowest in California. We offer 2 options for agents to choose from:
MONTHLY PLAN is $99/mo + $149/Closing
FLAT FEE PLAN is $599 per closing.
This is where the differences begin to show. Hidden Fees are how many 100% Brokers maintain profitability. Companies will often charge the following fees:
– E&O Insurance Fee
– Compliance Fee
– File Review Fee
– Technology Fee
– Administrative Fee
– Franchise Fee
– Training Fee
The Realty Source Difference: We have NO HIDDEN FEES. Our fees are exactly as we advertise. Since 2006 our fees have not increased by $1, and we have no intention to do so in the future.
As previously mentioned, many people within the real estate industry think 100% Offices are a quick way to riches. Often times companies started (and often failed) as mortgage companies, property management companies, short sale negotiators, Etc.
The Realty Source Difference: We launched Realty Source in 2006 with the sole purpose of offering a brokerage to agents that didn’t charge excessive fees and still offered world class support and services. We are real estate brokers and agents. This is our passion and not a shot in the dark to see if we can make a few bucks.
Broker/Owner Scott Engle has been featured in Realtor Magazine, Fox News, Reuters, San Diego Union Tribune and more for his unique marketing efforts and strategies. Scott became licensed at 19 and became a broker at 23. As one of the youngest ever brokers in the county, Scott set out on a mission to build the best brokerage possible for agents. Realty Source is truly built by agents, for agents.
The Realty Source Difference: We are led by a revolutionary and respected leader in the industry. There are no partners, investors, or debt. Agents can speak directly to the broker and owner, at any time.
While “most” companies offer Errors and Omission’s Insurance (E&O). There are many variables to consider when looking at a brokerages insurance policy. When considering a broker, the following items change from policy to policy.
– Coverage Amount
– AOP Coverage
The Realty Source Difference: Realty Source is insured by an Am-Best “A” Rated Insurer. Profit is sacrificed to ensure that Realty Source agents are adequately protected in the event of a lawsuit. Low deductibles, high coverages, Quality Representation, and all-inclusive coverages, the choice is clear.
Many 100% Brokers are simply there to collect a check, nothing else. If a broker is inaccessible, there is no amount of commission savings that can make up for that.
The Realty Source Difference: Our office in Mission Valley is open 9-5 Monday through Friday. Our Broker/Owner, Scott Engle, Is always available via phone call, text, email, or personal visit whenever needed. Agents are #1 priority at Realty Source.
Many brokers lack the real-life experience needed to adequately support a brokerage. California licensing laws make becoming a broker a relatively easy feat.
The Realty Source Difference: Scott Engle, Broker of Record, is a highly knowledgeable and respected broker. For the last 12 years Scott has been the licensed broker for Realty Source. Prior to becoming the broker/owner of Realty Source, Scott was a top producer from the agen of 19!
Emailing your contract to your broker is not exactly the most efficient way to run your business. Be cautious when selecting a broker. The infrastructure needs to be in place to support your growth.
The Realty Source Difference: We offer a proprietary cloud-based intranet, online transaction management and file storage, marketing portal, sales tracking software, and more.
While many brokers bring on new “partners” often in an attempt to add to their bottom line, you and your clients need the best service available, not the one who wins the bidding war for your brokers loyalty.
The Realty Source Difference: We do not partake in any financial incentives from our partners. We select our strategic partners based on their abilities, response time, and past success.
Our partners are:
Eaton Escrow – California top Escrow Company
Realty Management Group – #1 Property Management Company in San Diego.
When you are meeting with a client, do you want them to question the legitimacy of your brokerage? Do you want to be associated with an “e” realty company or a “Big” company that does not appeal to the consumer?
The Realty Source Difference: Our trademarked brand name has a proven track record of success and a favorable view from consumers.
When it comes time for you to select a new brokerage, the choice is clear. Realty Source is a leader in 100% Commission Real Estate. Over 97% of Realty Source agents never leave!
Please visit www.JoinRealtySource.com to Join Today.