The trend of 100% commission real estate brokerages is now well-established. Even big franchise names like REMAX and Coldwell Banker have been seen offering 100% commission. For agents comparing brokers to work with.
It’s important to note that 100% commission real estate brokers can be very different.
The first important factor to understand is that 100% commission real estate brokerages almost always charge a transaction fee. In fact, 100% commission real estate is just rebranding flat fee per transaction brokers. This means you should ask what flat fees are charged by the broker.
The next important factor is that many of the 100% commission brokers charge a monthly, quarterly fee, or even an annual fee too.
Other fees that 100% commission real estate brokerages charge include a key fee, errors & omissions (also called risk management), document storage, and sign-up fees.
These are fees you should ask about when interviewing a 100% commission real estate broker.
Other questions you should ask include:
- Are agents paid directly by escrow or does commission have to go to the broker first?
- Is there a conference room or workplace at the office or is the company completely virtual?
- What other benefits are agents entitled to?
- Is there an in-house transaction coordinator?
- What Realtor associations are they a member of?
- What are the hours of broker support?
These are just to name a few.
Remember, there is an abundance of 100% commission real estate brokers so take your time to determine what a good fit is.