The Real Estate Professional’s Life
They say the second most traumatic time for people is to move house. That often includes selling the current home and finding a new place. While we all understand how traumatic and emotional that can be, try being the real estate agent who is riding shotgun on the whole thing.
As well as dealing with the client’s emotional issues, Real estate professionals also work hard behind the scenes handling negotiations (and sometimes renegotiations,) liaising with title agents, loan officers, home inspectors, repair contractors, and very often, running around doing things because clients either don’t have time or are out of the area, so who else can step up to the plate?
On top of that, it is very common for Realtors to provide refreshments for everyone to share at the closing table and to buy a closing gift for their client to celebrate the successful sale and purchase.
Traditional Commission Payments
All the work, effort, skill, and time that goes into a successful closing is rewarded with a commission check. Commissions are negotiated. There is no set or agreed commission rate in America. Everything is negotiable, even though it is usual for the seller to agree to pay 5% or 6% of the sale price in commission. This article by Realtor.com explains typical commission systems. It is not unknown for further negotiations to result in an agent having to dip into their pocket to pay for something just to keep the transaction in place.
At closing, commissions will then be split between the two brokerage offices, out of which may come the franchise fee. It is then usually further split between the brokerage, and the agent. That split can be anything from 80/20 to 75/25 to 50/50. Some real estate companies charge a monthly fee to each agent and the agent then receives 100% of that side of the transaction’s commission.
The time from contract to closing can be anything from 30 to 180 days. In the meantime, all costs needed to keep their real estate practice going need to be paid as and when those costs are due. Because of that, many real estate professionals, both brokers and agents, make use of commission advances.
A Better Way
After all the work of getting a contract signed and communicated, wouldn’t it be great to receive payment? Having that cash in the bank instead of it just being a line on a TRID document, means all current costs, planned costs, marketing expenses, rents, staff salaries, etc. will be covered and can be paid without arranging an overdraft or dipping into the savings account.
By selling the commission on an agreed contract for a small discount, the commission check arrives in a very short and a guaranteed period of time. The online application is simple, fast, and straightforward, approval is just as fast, and payment is within 24 hours. Local offices are based in most metro areas, and online contact is available from anywhere.
Sometimes closings are delayed for reasons beyond everyone’s control, so instead of waiting and hoping, it is good to know that a previously-approved application carries a 30 day grace period before anything else needs to be done.
Brokers responsible for a whole office and real estate agents responsible for their own practice use commission advances to provide reliable cash flow. This means they can focus on their business, their clients, and their prospects without having to think about overdraft limits, delaying an action, or missing a good business opportunity.
Today’s real estate industry is fast and continually changes. Client demands are always there, standing out from the competition by being the best is a continuing challenge. Satisfying everyone’s needs and meeting ongoing challenges takes time, effort, skill, and experience. It also takes money. Making the most of today’s real estate momentum by always having available money is one sign of a successful practice. If you would like to learn more, or simply to make your first commission advance application, please just click here, and we will do the rest.