100% Commission Brokerages - Too Good To Be True?
Updated: Apr 28, 2020
100% Commission Virtual Online Real Estate Brokerage Companies
Passing fad or soon to be mainstream ?
Does the small print take away what the large print gives ?
Unfortunately there are numerous online real estate brokerage companies that advertise by dangling the "100% Commission" carrot on the home page of their website in order to lure an agent into their web. Only later for the agent to realize their other "fees" after clicking a few pages deep into their website. The ol' bait & switch tactic still hooks some of the people. Sadly that's why the unscrupulous companies still do it.
Why anyone would want to work with a company the hides the actual fees somewhere else on their website is beyond me. For myself, all credibility would be lost.
“...Only later for the agent to realize their other "fees" after clicking a few pages deep into their website.”
Let me explain where in the case agents do keep all of their commission with the Virtual Office Online model, how it actually works. When a transaction is ready to close the broker sends escrow closing instructions to the title company instructing them how to disseminate the commission to their agent. In CURB's case, the escrow company actually sends the entire commission check directly to the agent - as opposed to the old school brokerages where the money is first sent to a broker who gets his hands on it, and then takes out whatever splits, charges, & fees the agent is required to pay. And whatever is left over after all the fees are taken out, the broker then eventually cuts a check to the agent for the balance. Again, for informational purposes of this blog, the way it works in a true 100% commission model brokerage, as with CURB, the agent after receiving 100% of their commission merely pays a small transaction fee of $595 for the broker for overseeing the transaction, as required by law.
So to answer the question regarding title of the article, no, 100% Commission Brokerages are not "too good to be true" (at least with our brokerage). Just make sure the actual commission split is in black and white for all the world to see before signing up.
If you do want to actually keep 100% of your commission and be truly independent,
I encourage you to take a serious look at our full service real estate company;
* Check out a video below for more info.
Ronny Santana - Broker / Owner
California's Premier 100% Commission Brokerage
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