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The Best 100% Commission Real Estate Plan

With so many different 100% real estate brokerages in California,  agents often wonder which company has the best plan? It’s been our goal at BalboaReal Estate to create a flat-fee-per-transaction-inspired commission model that allows full-service real estate agents to pocket as much commission as possible. Our company started in 2011, and in that short time we have tested just about every low-cost commission option for real estate agent. The goal was that despite agents keeping more money, there would be no compromise on the service. On the contrary, the expectation is that our 100% commission plan is a reward only available to deserving agents that offer excellent service to their clients. In turn, we offer excellent broker support to Balboa Real Estate agents.

As mentioned before, 100% commission is not all the same. Basically every company has their own take on what that is. Many companies charge a monthly fee; we do not. In fact we don’t charge any sort of application fee, initiation fee, risk management fee, E&O fee, desk fee, franchise fee, or other fee. We just charge one simple flat fee per transaction. This begs the question: what is Balboa Real Estate’s flat fee per transaction? The answer is simple: 10 basis points of the sales price. Written another way, it is 1/10th of 1%. This means that if the sales price of a property is $500,000 then the broker fee is $500, that’s it, no other fees. Another example would be if the sales price is $800,000 then the broker fee is $800. You can multiply .001 times the sales price to find the broker fee. The licensee keeps the rest.

Real estate agents mught ask if this is the best 100% commission brokerage program. Our answer is unequivocally yes. An agent typically earns 2.5% of the sales price as the gross commission when it’s all said and done. This means that 2.4% goes to the agent. If the agent earns 3% then 2.9% goes to the agent. Some times agents will ask about transactions with the sales prices in the seven-figures. They notice that the higher the sales price the higher the broker fee. This is correct, however, it’s commensurates with how much an agent is earning too. If a licensee sells a home for $2,000,000 then the broker fee is $2000 while the licensee keeps $48,000 in a 2.5% commission scenario, or $58,000 in a 3% commission scenario. We sell a fair amount of homes in the seven-figure range and our overhead does increase with larger transactions. This is why we feel the “basis points” model is fair for the company and generous for the licensee. If you have any questions about this program please email admin@balboateam.com or CLICK HERE

 

 

 

Advice For Part-Time Real Estate Agents Looking For 100% Commission

Maybe you are looking to ramp up your real estate business, whether you’re just starting out or have been in the business for a while. Some of you may be deciding whether to focus on residential or commercial real estate. Of course you’re considering which real estate brokerage to join.

Have you asked yourself whether to work full time or part time as real estate agent? If you are considering working as a part-time agent it might be probably because you don’t want to quit your full time job yet for whatever reason. You can work as a part time real estate agent but it will be difficult to achieve the success in this industry without the help of a team. Working by yourself will be very difficult to effectively represent your client who are asking professional advice in buying or selling real estate properties.  For new agents, joining a real estate team has good benefits. Joining the right team that doesn’t charge agents some high split can save part time real agents a lot of money.

One of the benefits of a brokerage for a part-time agents is to have a reputable team behind them. With reliable associates and a company supporting you, clients will feel more secure with you and as an agent becaus ethey are getting all the company resources.

Another advantage of joining a real estate team where you can work part time is the ability to have your manager meet your client on your behalf. There are situations you cannot avoid like when you need to bring more expertise to the meeting or need a team member to help you market a property. This is when having a team to help a part-time real estate agent is beneficial.

So, if you are a licensed real estate agents in California or Florida looking for a real estate company to join, Balboa Real Estate gives full service real estate brokerage with professional affiliates all over the state. Whether you want to specialize in residential, commercial, or land transactions. Remember that part-time real estate agents are eligible for our 100% commission plan.

Contact us to see if Balboa Real Estate is a fit for your business.

How and Why Realtors Should Promote Community Pages

I came across a phenomenal article that gives several great examples as to why real estate agents should have community pages for marketing.

 

Before I post the link to this wonderful in-depth article I must offer offer my own marketing insight along with it:

Your website should be as targeted as can be. Such as a Neighborhood, tract of homes, an enclave, even one complex.

If you are targeting more than one area then you need more than one website.

Your website should be loaded with valuable content on your niche area.

You should utilize a blog to add updated niche information.

Your website should be associated with these social media tools:

  1. Facebook
  2. Pinterest
  3. Google Plus
  4. Twitter
  5. LinkedIn

 

I’ve said enough for now. Please enjoy the marketing information you’ll learn from this article:

CLICK HERE FOR ARTICLE LINK

 

 

The #1 Mistake Agents Make with Their Website

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This video explains the #1 mistake agents make with their website and how not to make them

Summary:  You may have noticed that most real estate agents have websites loaded with content. Usually everything a prospective resident would want to know about the community they would be moving to, school info, demographic statistics, even the weather. The problem is that the content is too general. Realtors try to cover too much area.
It is extremely challenging for agents to elbow their way into first page search engine ranking with the monsters like zillow, trulia, and redfin dominating most search results. The first step in having a change is to provide abundant quality, targeted, and specific content pertaining to a niche. Your website should be branded to a neighborhood, subdivision, or condo community. The more niche the better.

Balboa Real Estate offers agents Free Websites.

100% Commission + Residual Income for Real Estate Agents

 

100% Commission Real Estate in Southern California

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Balboa Real Estate is Bringing 100% Commission Real Estate to the Inland Empire.

Balboa Real Estate is headquartered in Orange County, but quickly expanded south to San Diego and north to the San Fernando Valley.

Naturally, as we expand we join the local associations or realtors.  Below is a list of associations of realtors of which Balboa Real Estate is a member.

100% commission real estate in Orange County | Orange County Association of Realtors (OCAR)

100% commission real estate in the San Fernando Valley | Southland Regional Association of Realtors (SRAR)

100% commission real estate in Ventura County | Ventura County Coastal Association of Realtors (VCCAR)

100% commission real estate in San Diego County | San Diego Association of Realtors (SDAR)

100% Commission real estate in the East Valley Riverside County | East Valley Association of Realtors (EVAOR)

100% Commission real estate in the Inland Valley Riverside County | Inland Valley Association of Realtors (IVAR)

We offer the two best 100% commission plans in the industry:

Option #1: Agents pay $900 a year and keep every penny of commission.

Option #2: Agents pay $495 per transaction or 10%, whichever is less.

 

Methods of Compensating Real Estate Agents – Commissions and Splits

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This article gives a great  overview of real estate commission plans. More evidence that our commission plan is undoubtedly the best in the industry.

You can read the article below or click here for the original, enjoy:

The Broker/Agent Traditional Commission Split Model:

The vast majority of real estate agents are compensated by a broker via sharing the gross commission amount that the broker collects. Here’s an example:
1. Gross commission amount of a transaction = $12,000.
2. Broker/Agent split of 50% broker/50% agent = $6000 to the agent.
3. The percentage split is an amount agreed to by the broker and the agent and usually reflects the amount of services and support the broker provides. It can also reflect the volume of business the agent brings in.

The 100% Commission Model:

In this compensation model, the agent gets the entire commission. This model can pay 100% to the agent because the agent is paying a “desk fee” or monthly office fee. This can be a significant amount/month, but experienced producers prefer it because their costs are capped while their income is not.
Example from above would be $12,000 to agent, but office fee could be $1000/month or more.
New agents generally are not interested in this model because of the fixed cost they must pay monthly.As of 2013, this model has almost disappeared, with even REMAX taking on new agents with less than a 100% commission.

Referral Fees from One Brokerage to Another and Agent Split:

Referrals come “off the top” before commission is split. The referral is a negotiated percentage paid to another company for sending a client, either as a seller or a buyer. Here’s an example of a typical buyer referral:
1. Brokerage A refers a buyer to Brokerage B in another state.
2. Using the $12,000 gross commission from above, and an agreed referral fee of 25% would give Co. A $3000, and Co. B agent and broker would split the remaining $9000.

Percentage Paid to Franchise for Business:

Some of the major franchises charge a percentage fee “off the top” of each commission to their franchisees. This fee would come off the top of whatever amount the Broker receives before splitting with the agent. Using a 7% franchise fee as an example:
1. $12,000 gross commission from deal would pay franchise $840, while broker and agent would split the remaining $11,160.
2. On the referral deal from above, the franchise percentage would come off of the $9000. Agent and broker split $8370.

Other Compensation Models:

With differing models appearing regularly for how brokerages charge their listing and buyer clients, there are many other ways an agent might be compensated….even by a salary.
For a new agent, the split negotiated with the broker should be carefully considered based on the services and anticipated prospect leads that will be received. Sometimes a 45% agent share can be better than a 60% share with little business coming from the broker.

100% Commission Real Estate in the 1980’s?

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This is quite hilarious, apparently 100 percent commission real estate is a relatively old concept.

This article, dated September 16, 1985, talk about the 100% commission trend in Florida

It’s surprising to see he charged $400 a month plus a transaction fee. Even in 2013 dollars that is way pricier than what current going rates are. 

You can find the original here or just read below:

Brokerage Trend: 100% Commissions Wall Street Company Switches To New Concept

September 16, 1985|By Jack Snyder of The Sentinel Staff

If real estate broker Jim Weinberg is right, the 100 percent real estate commission concept is going to be the coming thing in the residential real estate sales industry.

Weinberg has just converted his Wall Street Company residential brokerage from the conventional commission split structure to the 100 percent commission approach.

That means sales associates working out of Weinberg’s offices will get all of the commission they make on a sale. Previously, the associate got anywhere from 50 percent to 75 percent of the commission,depending on how much business the sales agent was producing.

In return for getting the entire commission, sales associates will now pay a $400 per month desk rental fee plus a small transaction fee on each sale. The associate also pays personal expenses such as long distance telephone calls, car expense and advertising. Associates in conventional brokerages pay a certain amount of their personal expenses now — car expense, for example.

Weinberg provides receptionist-secretarial help, access to the Realtor board computer, plat books, a full-time noncompetitive sales manager, training and a relocation system.

”It’s a win-win situation for both the broker and the agent,” Weinberg said.

The 100 percent commission concept surfaced several years ago, but has grown slowly in this market. A couple of years ago there was just one office — 100 Percent Realty — in the Orlando area utilizing the concept.

But the REMAX 100 percent franchise system moved into the area about a year ago and ”has done quite well,” Weinberg said.

Under the old commission system, for every 20 sales agents a broker had, four might be top producers, four might be so-so and the rest might be coming and going, he said.

Weinberg said all four Wall Street Company offices — Lake Mary, Maitland, Altamonte Springs and Winter Park — will be converted to the new system.