In Southern California, the seller typically pays for the owner’s title policy, and the county transfer tax. In Northern California, it varies county by county. Below is a guide for which party pays which fees throughout California. Please CLICK HERE or the image below.
Limited Function Referral Office Certification or LFRO is a designation for real estate licensees that aren’t members of the association of realtors, but want to hang their license with a broker that is a full realtor member. The implication is that the non-member agents is considered a “referral agent” and they are not expected to operate as an active agent. Instead, they are expected to refer their clients to “active” realtors on the team.
Once a salesperson is licensed with the Department of Real Estate, the salesperson is not required to join an association of realtors. Some licensees maintain their license as NBA or no broker affiliation. Salespersons must be affiliated with a broker to conduct business.
So, a salesperson might go hang their license with a broker, this is where there may or may not be a requirement. A broker is very likely to be a full realtor member with an association of realtors. Now, the distinction is the the association requires the broker’s salespersons to be full realtor members as well. It has nothing to do with the state. It’s a stipulation of the broker’s membership with the association of realtors. If the salesperson doesn’t sign up as a full realtor member then the broker will get a notice that they must either pay a fine, or the agent can be moved to LFRO designation upon Limited Function Referral Office Certification, or the licensee must be terminated from the broker’s employment. The obvious choice is for the salesperson to be moved to the LFRO referral agent status.
Occasionally, agents will inquire with Balboa Real Estateabout the 100% commission program. They ask whether or not they are required to be a member of the association of realtors. Our answer is that the agent is not required because we can have their DRE license active with our company and move the agent to LFRO referral agent status. However, when an agent begins to get busy, it would benefit them to pay dues to access a MLS and professional real estate forms.
Real Estate agents spend a lot of time comparing commission models, office amenities, and company policy when they consider joining a brokerage. Equally important is the name of the brokerage. Consumers have access to nearly all the data, so it is incumbent for agents to prove their value. Agents prove their value by building trust and credibility with their prospects. This brings us back to the company name. If you are a well-established agent, and your name is already very recognizable, then the name of your real estate brokerage takes a backseat your name. However, that is very rare, some tiny percentage of agents, much less than 1%. For the rest of us, the question will come up with clients, “what brokerage are you with?” These prospective clients are sniffing around. They want to know about your support system and if they are reputable.
So, you can choose a reputable name, like Keller Williams and be done with this, right? Yes, but you also are factoring in what the brokerage will charge you when you close a transaction. Let’s say you want to save the most commission for yourself, so you look at 100% commission model brokerages. This is a different segment of the brokerage world. Again, you will have to look at a list of companies, what they offer, and, of course, the name. So, Balboa Real Estate fits the bill as a 100% commission brokerage, and we don’t charge monthly fees. We are partial to our name because rather than something generic, like “First Home Realty,” or something abstract like, “Cyber Broker.” The name Balboa is a California icon. In each county of California it has different geographic landmarks and meaning, it sounds familiar.
Agents often call our office because they heard we offer a 100% commission program and they like our name. That is the conversation starter. Agents join our company because our reputation gives agents the credibility they need to win over clients. Agents stay at Balboa because we offer great support and take care of them.
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:
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 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.
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
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.
Often, we have ideas about how to grow our real estate agency business. Some are good and some aren’t, but many ideas never get a chance. This is because we think about something to do, or maybe a way to do something better, but never do it. Just think about it for a second, have you thought of something that you should do, or something that can be done better, a more “right” way, but just never do it?
Everyone has, they just don’t always admit it.
Now think of why you do it? What is the reason that you know you should be doing something, the right thing, but are not?
Wait! Save that answer for a therapy session. To be successful in real estate agency you don’t need to know why, you just need to do something when you realize there is a better way to do it.
Wasn’t it Confuscious, or maybe Phil Knight, that said “just do it.”
Don’t get “analysis paralysis,” if you know there is something that you should be doing, or perhaps a better way to do it, then take control in one easy step: make it so.
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.
