Where Can I Hang My Real Estate License for Free?
You invest your time, money, and interests into becoming the best real estate agent you can be. Once you are licensed, if you are like most newbies, you will sign up to work with the closest real estate brokerage who will accept you as one of their contracted agents. This sounds like the ideal setup to get you started with a lucrative real estate career, and for some, maybe that is true. However, when you start getting successful, making sales, and bringing in commissions, it can be a little painful to split your hard-earned commissions with the brokerage you work with.
Introducing: 100% Commission Real Estate
You may have heard about 100 percent commission real estate as an agent, and your curiosity is likely piqued. How does this work? How does the brokerage make money? What is the trade-off for such a change from a traditional model? This model is actually really efficient and really beneficial for agents and brokerages alike.
Instead of the agent having to hand over 25, 30, or 40 percent of their sales commission, they only have to pay a flat fee per sale. As an example, if you sale a $100,000 home and make a $10k commission on that sale, you would normally designate as much as $4k to your broker. With a 100 percent commission model, you would only have to pay a minimal fee.
The Advantages of Hanging Your Real Estate License for Free
Hanging your real estate license for free is a highly advantageous model for you as an agent. You get to take control over yourself as a business entity and the services that you have to offer. You may invest a little more time in your work, but the advantages of doing so include:
The chance at building your own business persona and brand with your name attached
Keep more of the money you get with each commission
You get to pick and choose what training and support you want as an agent
There are fewer surprises with brokerage fees and more transparent terms on sales transactions
Sell as much as you want, when you want to instead of contending with monthly or annual quotas
Most agents who decide to switch to a 100 percent commission brokerage find the business relationship to be much more freeing and rewarding. You get the opportunity to work more as you want to as a free agent instead of relying on a brokerage to lead your business.
The Potential Disadvantages of 100% Commission Broker Terms
The first question agents have when they are looking at transitioning to a 100 percent commission model is: What's the catch? The old saying that some things sound too good to be true tends to come to mind when you see a deal this sweet, and there can be a few potential downfalls to 100 percent commission brokerages, but these are usually fair exchanges for the extra income. There are a few trade-offs, including:
You likely will not have a designated office at the brokerage
You will be more responsible for investing in your own marketing materials
You may be responsible for scheduling showings
In general, the broker that you work with will be a little less involved in your business as an agent, which is why they are capable of accepting a flat fee per sale and can still make money themselves.
What to Look for in the Best 100 Commission Real Estate Companies
Even though there are multiple real estate brokers out there who are switching to a 100 percent commission model because it is so popular among agents, not every agency is the same. You do have to do your diligence to find the best companies to work with that provide the best terms.
Find a Company That Offers Flexible Terms
Companies that offer 100 percent commissions usually charge a flat fee per sale and possibly a monthly rate for working with them. However, the best 100 commission real estate companies will provide you with options to suit your needs as far as fees and commissions go. For example, at Ashby & Graff, you can choose between several levels, including:
$799 flat fee per transaction with no monthly fees as an Ace Agent
$499 flat fee per transaction and 410 per month as a Deal Maker
$425 flat fee per transaction and $47 per month as a Mover & Shaker
$195 flat fee per transaction and $89 per month as a Top Producer
$2,900 flat fee per year and no monthly fees as a Big Player
80/20 split commission per sale with no monthly fees as a Traditionalist
Find a Company That Offers Free Training and Support
Even though you will be navigating your sales mostly on your own, it does not mean that you should not have access to training and support where you need it. The best 100 commission real estate companies will still give you levels of support where it is needed and optional training seminars when they are available.
Find a Company That Offers Transparent Terms
Some brokerages that offer a 100 percent commission model are not all that clear with their terms. You may sign up for what looks like a good deal and find out later there are hidden fees to contend with. The best companies will give you a straightforward look at their terms so you know exactly what to expect when you sign up to work with them.
The Perks of Working with Ashby & Graff
Ashby & Graff is one of the leading real estate brokerages that offers the 100% commission model to agents who choose it. At our brokerage, we aim to provide every agent with a selection of terms so they can pick and choose which sales model suits their needs and their financial goals the best. When you make a sale through us, you will not have to wait to get your commission money because we pay agents straight from an escrow account. Plus, we have advantageous profit-sharing and referral programs to boost your income even more beyond just your sales commissions.
Even though we are a 100 percent commission company, we work hard to provide agents who work with us with the tools they need to be as successful as they want to become, right down to providing them with a free customizable website they can use to advertise their properties and their services. We do not force or mandate training sessions and allow you to be the agent you prefer to be on your own terms.
The bottom line is, with 100 percent commission models, the power to be the best, to make the most money as a real estate agent is placed in your hands. You only have to accept the levels of support you need as a professional that you truly need. If you are interested in working with Ashby & Graff real estate brokerage as an agent, reach out to us for information.