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Transcript from the podcast episode:
Greetings agents. I’m using a different microphone this time to eliminate that creepy background noise that was in the first recording, so hopefully the audio quality is better. We’re still testing things out. All right, so the topic of this podcast is how to get paid directly from escrow and what we’ll do is look at a typical scenario, the traditional scenario and then the difference of being paid directly from escrow. So in a standard scenario, the escrow is going to send the check to the real estate office and escrow companies typically overnight it, but I’m seeing more and more of snail mail and letters with commission checks in it. I don’t know why. Probably asked for companies are trying to cut costs either way, the check arrives here at the real estate office. Now when the check comes in the same day, we scan that check and we send a copy to the real estate agent so they have a record of it and provided the paperwork is done.
We immediately cut a check to the agent and what I do almost daily is drive these these letters down to the post office. The reason is that there’s a noon pickup at the post office, there’s a 5:00 PM pick up at the post office. I just think things get processed faster down there and it kind of expedites the whole, the whole process. I know that dealing with correspondence all the time with different real estate companies and then mailing us checks, sometimes someone will say, oh, we mailed it such and such day and then it takes several days to arrive and I’m just imagining someone taking a a letter and putting it up, you know, at the front desk and then that person might take it down maybe that day or maybe the next day and maybe they take it down, mail it at 2:00 PM but the mail carrier comes through at 10:00 AM and so now it sits in the office park mailbox for a day or God forbid this happens on a Friday or sits there a whole weekend.
I just don’t like those delays and that’s why I personally take our mail down to the post office to make sure that it goes out. When it does, it arrives very quickly at the agent. So that’s what we do in a traditional scenario. And already there we are much faster than other brokerages, but there’s a faster way. And I know that agents want to be paid as fast as possible. It’s common sense, right? And agent’s worked for weeks, probably months with or with their client. They’ve done all this work, they haven’t been paid yet. Now the property is closed, the transaction’s closed. Why would they want to wait any longer if they don’t have to? So there is a faster way and the faster way is being paid directly from escrow. Now here’s how it’s different. So the broker signs a commission instructions in escrow.
And then what we provided that the agent’s paperwork is squared away. We send a CDA commission disbursement, authorization to escrow signed by an officer of the corporation. In this case myself, and this instructs escrow to split the check, due the brokerage. So the brokerage will receive a portion, Balboa real estate. And then of course the agent will receive their portion do. And, and that of course cuts out all the time of escrow, having to send a check to our office and then our office having new cut a check and send it back to you. So I mean it, it’s not a huge amount of time. It cuts a cut out of the process, but a solid couple of days at least I would say. Now here’s something to consider. In order to have a CDA done, a couple of things have to happen. Number one, the file must be complete in advance to recording.
So what an agent should do is go to www.turbotransaction.com, make sure they have their paperwork in there and then before the escrow records, towards the end of the transaction, the at the agent’s going to click a button, the green submit complete file button, and that’s going to send a notification to the office that that the file needs to be reviewed. And then someone at the office will review the file and send an email back to the agent. Now if there are missing items, the email is say, dear agent, your files missing, document x, Y, and Z, please upload and click that green button again to let us know that you’ve been in there and you’ve updated the file or you’re going to get an email. Dear agent, thank you. Your file is complete if you get the complete email, then you have the green light to go over to Balboa team.com/CDA so it’s our company URL forward slash, CDA.
That’s the commission dispersement authorization I was talking about and in there there are fields that you fill out so that we can create a CDA that instructs escrow to to pay you directly. Now there are a couple policies that have changed over time. We used to not have that CDA page on the website, but I added it because I wanted to avoid any sort of misunderstandings in terms of what the gross commission is or how much the agent expects to receive and all of those terms have to be addressed on that page. Second, I’ve actually instructed our office administrator to send out a CDA. Two with the agent as well to have the agent initial the CDA because again, I don’t want there to be any surprises. The process needs to be transparent the whole time. So then we send that off to escrow. Now it’s important to note that the file must be complete in order to get this CDA.
The reason is that the file is incomplete and the commission’s been paid, then it’s very difficult, very difficult to get those outstanding documents. We essentially become like bill collectors here and this is just something that we’ve experienced firsthand through trial and error over the years. I mean, a lot of what works at Balbo works well because we’ve done trial and error and those of you that have known the company for years and years, you’ll, you’ll know that our commission plan has changed over the years. Little things have changed always for the better. And, and that’s based on trial and error. What works and what doesn’t, what causes problems, um, and what, uh, makes things run smoothly. So there you have it. That’s what you need to do. Just make sure your paperwork’s in order. Now there’s another thing to consider that is if you use an inhouse transaction coordinator, you are always entitled to getting a CDA.
Why? Because again, that that compliance factor of paperwork, we know how it’s been addressed with the Trent, with an in house transaction coordinator word we’re taking, we’re assuming all that responsibility of document collection and your outsourcing the paperwork, right? You’re having another trend, you know you’re having a transaction coordinator step into the do all the leg work for you. So the paperwork should be as good as done. And if we’re the company, assuming that responsibility, it’s as good as you’ve submitting a complete file in, in, in our eyes. And so for that reason, you’re entitled to a CDA. So the transaction coordinator is going to offer a CDA to you if, if you want to be paid directly from escrow. So keep in mind that if you use an inhouse transaction coordinator, you also can, can get a CDA, your files as good as complete. All right, I think that will conclude today’s episode. Thank you.
Which 100% Commission Real Estate Company Pays the Fastest?
At Balboa Real Estate, if your file is complete at closing or you use our in-house transaction coordinator then you can be paid directly from escrow at closing. Otherwise, escrow sends a commission check or wire to the office. In the many years that I have managed Balboa, I know that agents like to be paid as soon as possible. If we get agents their commission fast, then they appreciate it. Maybe some don’t notice when it comes fast. However, every agent notices when it comes slow.
Many companies send checks slowly as a matter of convenience. For example, it’s easier to go online and have your bank issue the check for the brokerage. It saves the headache of printing a check, signing, stamping and mailing. The drawback is it can take days, often over a week. This does not make agents happy. In contrast, when we receive a check it’s a hot potato that needs to be accounted for and then issued to the agent as fast as possible. Cutting checks is our top priorty for our interal operations.
Have you ever had someone tell you they were putting a check in the mail and then it still takes days to arrive? This is the type of situation when someone walks out to the office park mailbox, after mail has been picked up for the day, then takes credit for mailing it that day. Meanwhile the check sits in there until the next pickup. At Balboa Real Estate we calculate the pickup and delivery times. This often means making trips to the local post office because the office mail has been picked up and we want the mail to go out that same day. In urgent scenarios, we make trips to the post office so that we can get a commission check out by the noon pickup. Despite having nearly 200 agents on the team, we operate at the same capacity as a small shop with a few agents – considerate and speedy service for agents.
To find our more about our 100% commission real estate program, please CLICK HERE
Join the Balboa Real Estate team and be apart of the best 100 percent commission model in the industry
The 100 percent commission plan has been around in the real estate industry for a long time. Many real estate agencies in California have advertised that their firms offer 100 percent commissions but when you get down to the details, there are many hidden costs that are involved and makes the 100 percent commission plan dwindle down to the broker taking half of the commission and leaving the agent with less than they deserve.
Many firms require that agents pay a startup fee upon joining. After those fees, there are monthly/quartly fees depending on the plan that you choose to go with. There might be key charge so that you may use the office. Many firms advertising 100 percent commission will charge their agents a fee for each transaction to use a transaction coordinator. One firm charges over $100 for a document storage fee. Another requires you to use a TC on your transactions and pay for those services. Since there are so many fees involved with joining a 100 percent commission firm, you would think there are many benefits that would make the monthly payments worth it. Many California Real Estate agencies offering 100 percent commission plans offer seminars, free printing, training and what not, but these benefits are not widely used by agents.
Agents would get more from a real 100 percent commission plan by joining Balboa Real Estate than the few dollars that they would gain from the free printing allowances from any other real estate firm in California offering 100 percent commission.
Join Balboa Real Estate and receive the best commission model in the industry. Our transaction fees start as low as $99. There are no monthly or quarterly fees. No sign-up fees. E&O insurance at no cost to agents. Use of our office and client meeting rooms without a key fee. No junk fees.
Balboa Real Estate is not only a real estate agency but we are a team that’s redefining the 100 percent commission model. You will be among seasoned veterans who have decades of experience in real estate and expansive knowledge on marketing that will help you in growing your business.
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