real estate brokerage Archives - BALBOA REAL ESTATE® | CALIFORNIA 100% COMMISSION REAL ESTATE BROKERAGE

If you are a real estate agent looking for a brokerage that offers you the flexibility to keep more of your commission, a 100% commission brokerage might be the right fit for you. In this type of brokerage, agents keep the entire commission earned from a transaction, minus a fixed fee or percentage paid to the brokerage.

The traditional brokerage model, on the other hand, typically takes a percentage of the commission earned by the agent, leaving them with a smaller share of the earnings. This percentage can range from 50% to 70% depending on the brokerage.

In a 100% commission brokerage model, agents are responsible for their own expenses such as marketing, office space, and technology. In return, they receive the entire commission earned from a transaction, minus a fixed fee which is usually lower than the percentage taken by traditional brokerages.

Experienced agents who can generate their own leads and close deals without relying on the brokerage’s support services may find 100% commission brokerages more attractive. However, newer agents who require more support and guidance may not benefit as much from this model.

It’s essential to note that different 100% commission brokerages have varying structures and fees. Therefore, agents should review and compare the options available to determine which brokerage model best suits their needs.

In conclusion, a 100% commission brokerage offers agents the potential to keep more of their hard-earned commissions. As an agent, it is crucial to understand the pros and cons of different brokerage models and choose the one that aligns with your business goals and needs.

CLICK HERE to view our 100% commission model

Many agents ask if Errors and Ommission Insurance (E&O) insurance is required by law. A real estate broker, once licensed by the Department of Real Estate, can broker real estate sales without E&O insurance. They aren’t required by law to have a policy, but any legitimate professional would not conduct business without E&O insurance. So, while an E&O requirement isn’t enforced by the state, it’s still an unoffical requirement to properly conduct real estate brokerage. The implications of listing and selling real estate without E&O insurance are catastrophic. Also, clients deserve to have an agent that is insured.

Now, since we have established that E&O insurance is needed, let’s talk about cost. If you are a lone or independent broker you simply need to call an insurance company and tell them that you need a policy and they will send you a quite for hundreds or maybe thousands of dollars (based on your sales volume) for a year-long policy. For most agents that hang their license with a brokerage, the company has a blanket policy that covers the agents. Every type of transaction, residential, commercial, agent-owned, dual agent, sales price….you name it, affects the cost of the company’s E&O insurance policy. Most companies pass this fee on to the agents in the form of a per transaction risk assessment for, or some sort of charge assessed randomly. Either way, agents have to come up with money to pay a fee for E&O Insurance. This is one important way that Balboa Real Estate is different than other real estate brokerages. Our E&O insurance is included in our transaction fee. This means that agents do not have to pay anything additional out of pocket for E&O insurance. It’s included in our flat fee plan. So, if you want to avoid paying an E&O insurance fee then join a brokerage that pays it for all the agents, might we suggest Balboa Real Estate?
Learn more about Balboa Real Estate’s 100% commission plan here.