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Can Agents be Paid Directly from Escrow?

We are often asked if real estate agents can be paid directly from escrow.

The close of a real estate transaction often marks the culmination of months of work to earn a commission. Naturally, agents want to be paid that commission as fast as possible. Any reputable company has requirements to be met before the agent is paid. Namely, that all required documents are in the file. At Balboa Real Estate, we want agents to be paid as soon as possible. Our corporate office is in San Diego Cuunty, but we have agents all over the state of California.  Therefore, it will save agents a couple days if agents are to be paid directly from escrow. If an agent has a complete file with all required paperwork on or before closing, then we will send dibsursement instructions for escrow to pay the agent their portion of the commission directly.

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How To Keep 100% of Your Real Estate Commission

The phrase “100% Commission Real Estate Brokerage” has been a popular trope for about 10 years. 100% Commission has taken on the meaning of a low-cost brokerage, typically where a licensee pays a small flat fee to the broker and keeps the rest of the commission. There are variations, but this the general idea.

It can be argued, from a purist standpoint, that 100% commission isn’t truly 100% commission because if a licensee has to give even $1 to the brokerage then it’s not a true 100%. While the term may not be a full 100% to the purist, it is very close to 100% and still far better than tradition brokerage splits.

However, there is a caveat to all this. A clever licensee can structure a transaction to where they keep the full 100% commission and not a penny less. I will show you two ways to make the broker fee a pass-through cost to the client so that they pay the broker fee rather than the licensee.

The first is on a listing agreement, when the licensee is a listing agent. Since there are variations of the transaction fee paid to the broker, we will use $500 as an arbitrary number for our example. Paragraph 3 of the listing agreement is where the licensee will put the listing fee percentage that is being charged. After the space for listing percentage there is the word “AND” with another blank space (see image below). In that space the licensee will put the amount of their broker fee. In the case of $500 the licensee can write something like “$500 broker processing fee” or “$500 brokerage administration fee.” This will cover the licensee’s transaction fee and allow the licensee to truly keep 100% commission.

100% commission real estate brokerage

The other way to truly keep 100% of the real estate commission is with the purchase agreement. Paragraph 7  is the allocation of fees. Section D, lines 8 and 9 are generic blank lines where the licensee can check a box for the seller or buyer and then write in a fee. In the case that the licensee is representing a buyer they can write check the buyer box on line 8 and then write $500 “processing” or “administration fee” to Balboa Real Estate.

This will ensure the buyer pays the licensee’s broker fee thereby allowing the broker to keep 100% of the commission.

If you want to learn more about a 100% commission real estate broker that services all of California then please contact us at info@balboateam.com

 

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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

 

 

 

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Does Outbound Calling Work in Real Estate?

Real estate agents often ask, “does outbound calling work,” or, “does cold calling work?” The answer is at the end of this post, but first it’s important you know why. Real estate agency is competitive and has a long ramp-up period. New agents are super motivated and are eager to be proactive in order to drum up business. This means holding open houses for other agents, sending direct mail, and even picking up that ice cold sales phone to dial for dollars.  While outbound calling is  better use of time than additional training for agents, it’s not a good use of time.

Several years ago and before, let’s just say 2007 and earlier, outbound calling was still a fairly effective way of generating business. However, a lot has changed since then. The internet has become a huge factor in consumer thinking. If a consumer is considering a service or even using a particular agent they will go online and do some investigatory tail sniffing to see if they check out as a professional. This has created a major shift in how professionals and consumers meet. We’ve moved from sales-system oriented marketing to relationship-based sales. Social media and internet presence meet consumer research. Connections are made and quality informative content is delivered to consumers which often results in a sale. This is unequivocally a higher quality way for consumers and professionals to choose to work together. Consequently, it makes outbound calling look more desperate and less credible. The relationship model has has been naturally selected over outbound calling as the winning marketing strategy.

It’s not enough to just say that outbound calling is less credible as the reason why it’s not as good. It’s also important to mention that because it is an outdated method facing extinction, the conversion rate is worse now too. This makes it harder for the remaining die-hards still out there in the boiler room trenches. Will these outbound callers drum up any business through cold calls? Some might, but at painfully thin conversion rates which beg a bigger question – is cold calling a reasonable and sustainable longer term business model? The answer is simply NO.

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Is there really such a thing as a 100% commission real estate brokerage?

Is the term 100% commission real estate brokerage accurate or a misnomer for low-cost brokerages? By now 100% commission real estate brokerages have been around long enough to represent a considerable slice of the the real estate brokerage world.  Many real estate agents know that there are brokerages that charge less than the traditional broker-agent split. Some of these 100% commission brokerages charge a flat fee per transaction with a monthly fee or without a monthly fee. Some brokerages charge a flat annual fee and the licensee keeps every penny of the commission they charge. Many charge licensees separately for  errors and omissions insurance. The point is that this isn’t exactly a 100% commission in the literal sense of the word.  If a brokerage charges a flat fee per transaction, even a very small flat fee, then the licensee isn’t getting 100% commission, right?  Maybe they are getting 99%, which still isn’t 100%. Therefore the term 100% commission encompasses a variety realty brokerages with a structure of very low-cost brokerage fees for the real estate licensee.

 

Now, it should be noted, that this is simply an analysis of what 100% commission real estate has grown to mean. The variety of 100% real estate companies are still vastly better that their traditional counterparts. Many traditional companies charge a substantial percentage of a licensee’s commission that is way more than any 100% commissional estate brokerage. As recent as 10 years ago from the date of this post, the industry was still overwhelming using the traditional model in which brokers took 20%-50% of a real estate agent’s commission. This was justified because agents got to use the office, copy machine, fax machine, and all sorts of “brick-and-mortar” tools. Technology has made most of this obsolete. Realty documents are rarely printed, most of the transaction is done online through email, using Docusign or scanned PDFs. In-person meetings are held at the home of the listing appointment or at properties being viewed by the buyer. The days of bringing a buyer back to your office and having them sign a stack of papers so that you can fax an offer to a listing agent are gone. Agents that seek 100% commission real estate companies realize this and typically have no interest in paying the overhead for tools that they simply don’t need.

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What To Look For in a 100% Commission Brokerage

For years, many real estate agents have left the traditional office model of paying 20%-50% of their commission to the brokerage. These agent go to brokerages that charge agents a flat fee instead instead of a percentage of the commission. This flat fee commission arrangement between brokers and agents is what is referred to as a “100% commission brokerage.”

Once a real estate agent decides that the 100% commission brokerage model is right for them, they have several options to consider when choosing the right brokerage.

Does the agent want to pay monthly fees? Many 100% commission real estate offices charge a monthly fee, but some don’t.

Is errors and ommissions insurance included in the flat fee or is is paid separately? Find out if the E&O fee is included in the flat fee or paid separately, If it is paid separately find our how much and how often.

Is there a workspace or conference room to use?

Is there any sort of application or initial fee to start with a 100% commission real estate brokerage?

Can you buy or sell your own home as a real estate agent with a 100% commission real estate brokerage?  Some brokerages have rules against this and require agents to use another agent within the brokerage to represent them on their own home sale.

Is there broker support, and how often is the broker available?

These are the basic questions that should be asked by any prospective agent looking for a 100% commission real estate brokerage.

Balboa Real Estate does not charge monthly fees. Errors and ommissions is included in the low flat fee.

To find our more about our 100% commission brokerage, please CLICK HERE

 

 

 

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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.

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Balboa Real Estate: Your Real Estate Future Starts with Us

When you got licensed as a real estate agent, it was extremely important to decide which broker is best to work with and get trained. A strong start at the beginning of your career from a 100% commission broker will make a huge impact for those who are new to real estate field. Some larger and renowned brokers, like Balboa Real Estate, offer an extensive training programs to new real estate agents. Before joining a real estate firm, it is important to check certain factors like the business image, environment, size and so on. Let’s have a look at what you as a newly licensed real estate required to know about a broker before giving interview.

Size
Size does matter. In states like California, where you can find companies which range from 10 agents to hundreds of agents. It is important to be. With a real estate company with the best commission program and statewide coverage. Always consider to join a reputable company with statewide coverage that gives the support that you need while working.

Facilities
Facilities are important and one of the more important factors to look for. You surely  don’t want to take your clients in an office without basic facilities. Its important to check whether broker office has basic amenities like computer, fax machine, copier, adequate parking space, etc.

Management
Management of the broker company is as important as you contact with potential buyers. In large company, salaried managers will be in your primary contact list while in small real estate company, owner of the company will manage your work. It is your duty to ask about how many full-time and part-time agents the company have. How managers will manage the work of all agents and how they all will communicate.

Training
As a new in real estate field, it is essential for very real estate agent to get trained under experts who have decades’ experience in real estate field. Broker companies should offer training for their new agents. It is important to the principals and fundamentals. For example, how to write purchase agreements, you will learn about real estate law and contract law, how to finance real estate, how to list property for sale, and how to evaluate real estate property. Proper guidance and training is important to get for acquiring skills in such areas as negotiating and sales techniques.

Administrative Support
In many real estate company, brokers handle MLS listings and processing of paperwork transaction. Ask account department about how long you will get your commission after closing the deal.

Recognition
Your personal goal determines how successful you can become in real estate. Making money is goal of every real estate person, but you should get recognition for your achievements from your broker or the real estate company for which you are working. Successful real estate companies recognize their top agents.

Balboa Real Estate is looking for agents to join their team on a 100% commission basis. There is no need to pay the monthly or yearly fee. Just pay a transaction fee and we provide training and guidance from experienced real estate professionals. successful

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What a Real Estate Agent Should Look For In a Brokerage

What a Real Estate Agent Should Look For In A Brokerage

Choosing a real estate brokerage could be tough for agents who wanted to make sure that all their efforts in finding buyers are all worth the commissions they are getting. I know because finding and prospecting clients are not easy as pie, unless you are an elite and a very experienced agent who had already built brand and connections in real estate industry, you have to go certain measures to turn that inquiry into a closing sale.

If you have a license and whether you are new or professional real estate agent, one thing you need is a real estate broker to run your career. Sure, you can pick any brokerage you want, but remember that in order for an agent to be successful, there are few important factors a new real estate agent needs to consider about their brokerage.

There are two important factors an agent should consider when searching for a real estate company to work with:

Commission

Real Estate agent commissions have different types, the split commission and the 100% commission. Example of a split commission is s 70/30 or 50/50 percent agreement between the real estate agent and the broker. The split commission may or may not yet include the broker’s fee because fees vary from broker to broker. Additionally there may be franchise fees or separate error and omissions fees. Whereas, with 100% commission, a real estate agent would take home the full commission and only need to pay a transaction fee like broker or office fee.

Balboa Real Estate offers 100% commission to both new and experienced agents with just a very small fee in every transactions starting from only $99. No start-up fees or any other fees are required for any licensed real estate agent in California to join the company. When considering other companies, make sure to find hidden fees there are in addition to a transaction fee.

Support / Marketing Training

There is more in a brokerage other than the commission. Another thing that a real estate agent would look for when finding a broker is their marketing support. A good working environment, support and tools available in the office are mostly newer agent need to run their business.

A good working relationship with your company and a healthy environment as a whole means more sales and more commissions. That’s why Balboa Real Estate offers both 100% commission and marketing support for agents to perform exceptionally.

Depending on which real estate career you are in right now, choose a broker that is worth all your hard-earned money. Contact us to find our more about 100% commission. 

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Grow Your Real Estate Career At A 100% Commission Real Estate Brokerage

The journey of real estate agent is a most rewarding journey and can be a big reason for stress too. There are many decisions you have to take that can change your entire career path. As a new real estate agent, finding the best brokerage is difficult. Real estate is business is relationship oriented. Successful business can come from referrals and past clients, which a new agent typically doesn’t have.

 

For your starting years as a real estate agent, you have to do hard work and earn your business through efforts ranging from door knocking to cold calling expired listings. Such activities take a lot of time and to pay off. Sometimes agents have to go months without any single commission check. Therefore, it is essential to choose the right brokerage from the beginning of your career as a real estate agent.

 

When you start working as real estate agent, it is important to you to see whether the brokerage is good to fit you or not. In this process, it is important to discuss over commission splits, training support and lead generation. If you are a recently licensed real estate agent, then joining the right a 100% commission real estate broker can expose you to a long list of client base and help you to grow your real estate career. Therefore, it is essential to find a 100% commission real estate broker that offers you the opportunities that help to enhance your career, where you can learn new marketing techniques, selling techniques, and very importantly allows agents to keep most of the commission they earn.
Doing online research of 100% commission real estate brokers will be your starting point from which you can do the broker search. By calling them or visiting their office or website, you can inquire about whether they are recruiting new agents or not and what fees they charge. Pay attention to all the fees that these companies will add on or that might be hidden. It is also important to check whether such companies have social media presence or not. A successful broker has a presence on different social media websites like Facebook, Twitter etc. and has an attractive website. You can check reviews and testimonials about such a real estate company.

 

It’s always a safe bet to join a real estate brokerage that does not charge agents any upfront fees when you start a real estate career. Brokerages have different mentoring programs that will help you shape your career. You will get specific tips that will improve your insight into real estate world. Check the members of their team, how long their members shave been with the company, and what are their areas of expertise and experience levels. All this information is usually available on real estate brokerage’s websites.

 

Balboa Real Estate is welcoming new real estate agent to join their team online through their website. We do not charge start-up, monthly or quarterly fees. You need to pay only one low flat fee that is only due at closing. For more information about our 100% commission structure, Please Click Here.

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