2 min
Are you involved in the real estate industry as an agent? You should be aware of the different models involved in any real estate transaction. Usually, in a traditional real estate transaction, you are only entitled to 5-6 percent of the total commission of a real estate transaction -as a real estate agent. However, with the 100% commission model, you can save the full commission for yourself. Moreover, you also obtain full ownership of the MLS listing.
In case you wish to achieve a profitable real estate trade, but with maximum commissions and reliable assistance for contract, you can opt for one hundred percent commission real estate model.
What is a 100% Commission Real Estate Model?
The hundred percent commission real estate brokers who have already ensured the changes over to some organization offering this unbelievable bargain will still have to pay some fee with every sale. However, you can be assured that the overall fees tend to be significantly lower. For instance, you will normally have around 70/30 commission split with a broker, around $9k commission will imply $3K to the broker.
When you tend to work with a full or 100% commission company, you are only expected to pay something around $499 or even the transaction fee of $195 with every home sale. There can be some monthly fee that is minimally conservative.
The Trade-off for 100% Commissions
Using 100 percent commission might appear too good to be true. After all, the real estate brokerage will also need to generate money. If you are expected to transition from a standard agency to the 100% agency, you can observe some major differences along the line:
· You will not have any dedicated office at the real estate brokerage. If you wish to have an office, it will be up to your decision.
· You will not receive access to industry meetings or extensive training organized by the real estate broker.
· You will have the responsibility of things like purchasing ads, posting them, and showcasing homes. However, it does not tend to be very different from conventional commission real estate systems.
Benefits of 100% Commission Real Estate Models for the Brokers
One of the primary benefits with 100% commission real estate model is that you will be getting the total amount of money with every property sale. Rather than handing over some portion of the commission every time you will be making a real estate transaction, you can keep the total amount of money to yourself sans the transaction fees. It brings about a significant difference in the overall income.
Another major benefit of 100% commission real estate is that you become highly self-reliant as a business owner. Even when you are not working under the contract with a self-contractor or a broker, you will have no strings attached. There will be no limitations to consider. With the full real estate commission model, you are quite an independent agent while being able to set up your own schedule and appointments.