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In some real estate offices agents have to pay a monthly brokerage fee. Not every realty brokerage charges a monthly fee to its agents. For example, Balboa Real Estate does not charge its agents a monthly fee. Now, even though we don’t charge a monthly fee, we aren’t universally opposed the concept of charging a fee in certain circumstances. Some real estate agents like to hang around an office. If you like to go down to an office, and jump on the company wifi with your laptop, as you drink a Keurig coffee, sitting in an auxillary desk, under an AC vent, as your print out an email, then a monthly real estate brokerage fee is indeed intended just for you. Also, you should happily pay it, because all the overhead created by the office ammenties you like to utlilize cost the company money.
Real estate brokerages that offer the “100% commission” model have a thin profit margin, so they must be careful when budgeting. The understanding is that the monthly fee is in place to help cover the overhead, ideally a break even. All the charges to an agent’s commission should be added revenue, to pay salaries and such. Balboa Real Estate offers 100% commission, a low flat fee per transaction, but no office to hang around. The reason is that we did have an office – for years- and it was barely utilized. Why was our big beautiful office not utilized? The answer is that it’s more convenient for agent to meet the sellers at the listings, buyers at the prospective properties, and conduct research/paperwork from their computer than to drive out of the way to our office. Agents that keep busy and focused know this, and many see no point in paying a monthly fee for an amenities that they do not use. Agents like this come to Balboa Real Estate for 100% commission, our broker supervision, and not our office.
Have you heard of a non-independent broker escrow company, also known as a broker-controlled escrow? These are different from other escrow companies, and I’ll explain the difference. To conduct escrow business in the state of California, you must have a license. Interestingly, there are three different types of licenses that allow you to perform escrow. The reason there are three is because there are three different licensing bodies that oversee escrow activity.
- The Department of Insurance.
- The Department of Business Oversight.
- The Department of Real Estate.
Naturally, one license is harder than another to obtain. The Department of Insurance license is basically for title companies that have escrow divisions. This is an expensive and very regulated license to have and maintain. My personal opinion is that title companies are the safest places to have escrow conducted.
The Department of Business Oversight is for independent escrow companies. For example, let’s say an escrow officer that worked at a title company wanted to start her own escrow company. She could start an independent escrow company by obtaining a license through the dept. of business oversight. She would have to show 5 years of escrow experience for her escrow manager, maintain liquid asset reserves, pay into a surety bond to protect consumers, and have her financials audited, among many other screening mechanisms designed to maintain safety standards for the escrow company.
So where does the non-independent broker escrow fit in? A non-independent broker controlled escrow is licensed by the Department of Real Estate (DRE). However, there isn’t a special escrow license issued by the DRE. The license needed to conduct escrow is just a real estate broker license. This means that if you are a real estate broker you can open up an escrow trust account and, just like that, have an escrow company. While the the other types of licenses require all sorts of protections, assets, and audits, you can skip that as a non-independent escrow company. To be clear about how low the barrier of entry is, a real estate broker can file a “doing business as” (DBA) name i.e.. “Wild West Escrow – a non-independent broker escrow,” with the Department of Real Estate, then open an escrow trust account, and they are now ready to accept your wire transfers. This real estate broker is now in complete control of an account with people’s life savings swirling around in it.
What happens if an escrow officer makes a mistake at an non-independent escrow? Let’s say the escrow officer accidentially wires the seller’s equity money to a fraudulent account – it happens – then what? Does the non-independent escrow company have cash reserves to remiburse the seller- provided they would even be willing? Because there is no requirement to have reserves. Remember, a broker licensee started this company by registering the name and opening a business/trust bank account. However, there are zero guarantees that if something goes wrong they will have the means to fix it or even the obligation if they did.
A personal contact confided that she sold their home with a non-independent broker escrow and their sale proceeds were wired to a fraudulent account. She went after the escrow company and they settled for pennies on the dollar.
Additionally, escrow is supposed to be a neutral third-party. However, if one of the brokers in a real estate transaction controls the escrow and represents one of the parties, then that is a conflict of neutrality. The other party is supposed to trust that the other party’s broker will conduct escrow in a neutral manner.
A non-independent broker escrow company should always be avoided. Considering that credible, safe escrows are often cheaper and easily accessible, it’s extremely poor judgement to settle for a non-independent broker escrow company . We highly suggest using a title company for title/escrow because it’s safe and efficient. Second to that, an independent escrow company licensed through the Department of Business Oversight.
There is a lot of confusion around filling out the cumbersome Agent Visual Inspection Disclosure (AVID) form. California Civil Code 2079 requires that an agent must conduct a reasonable competent and diligent visual inspection of real property in order to disclose to the prospective buyer and material facts affecting the property’s value, desirability, and intended use. Agents do not have to inspect:
- Areas not reasonably accessible;
- Areas off the site of the property;
- Public records or permits concerning the title or use of the property; or
- The common area if the property is in a common interest development
Since we know that California law requires agents to performs a visual inspection, we will determine what document to use.
First let’s establish what is a “material fact” from other facts, since that is what we agents are expected to disclose.
An online legal resource defines material fact as: A fact that would be important to a reasonable person in deciding whether to engage or not to engage in a particular transaction. Based on this definition, many cosmetic issues, like scratches on wood, for example, would not need to be mentioned. In fact, what if there are no material facts to disclosure? Do agents still have to do a disclosure? The answer is yes.
The good news is that there is a place in the transfer disclosure statement (TDS) Sections III and IV for agents to fulfill disclosure duties.
If there are more material facts to disclose then an AVID form can be used to give a more comprehensive account of the inspection.
If you don’t have access to an AVID form then you can you use a substitute form.
In no case should an agent leave the visual inspection section of a transfer disclosure statement empty and not do any other form. If this happens, and a buyer is adversely affected by a material fact that was missed by the agent then that buyer may pursue the agent for negligence.
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.
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
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.
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
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
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.
We’ve all seen the real estate agents that call themselves consultants rather than agents or salespeople. The reason is blatantly obvious, and a little cheesy, but there is actually a higher 
level and deeper meaning than these real estate consultants may have ever considered.
Let’s face it, the title “salesman” has a bad connotation. People that are in sales squeamishly change their title to something like account executive, account rep., and the sales department has been rebranded as the business development team. Real estate agents would never call themselves salespersons on a business card, and to put their title as “real estate agent” strikes some agents as cold or generic. However, “consultant” is much more elegant. It just has a ring to it that that suggests a knowledgeable advisor.
Top producing agents don’t sell homes like most salespeople sell products. A home is an extremely dynamic and personal product, consumers already have in mind their needs. Their preferences surpass what they will ever tell their agent.
This is where the title “consultant” rises to more than just a better sounding title and becomes the true sense of the word. Good agents deliver high quality data to their clients and educate their clients so they can rapidly make a sound decision. They don’t push homes onto people like most salespeople push products. Facilitating home sales is a matching and information game.
Top agents do have the qualities of top salespeople because both personality types are often charming, persuasive, and carry a purpose. These qualities are just used differently.
Agents sell their brand and character, then they get down to business and perform the work when contracted. Salespeople sell a product and use their brand and character as reinforcement to make the sale.
All top agents make good salespeople, but not all top salespeople make good agents.
Please CLICK HERE learn more about joining Balboa Real Estate
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