What Is The 100% Commission Real Estate Model and How Does It Benefit the Agents

What Is The 100% Commission Real Estate Model and How Does It Benefit the Agents

Some brokerage firms or agents post ads saying 100% commission realtor. It means the broker gets to keep all the money earned from their real estate deals. So, if the brokerage firm or the agent does not take any commission then how will they make money? If you are a real estate agent the 100% commission model sounds too good. Are there any secrets with this type of commission structure?

In California, Big Block Realty is a real estate brokerage platform that offers every realtor a 100% commission & support program.

What is the trade-off for 100% commission?

Garnering a 100% commission model sounds great but there is a catch. The brokerage firm also needs to make income. The key difference between typical real estate firms to a high commission realtor includes –

  • There will be no office space at the brokerage. If you want then choose accordingly.
  • There will be no access to an industry meeting or extensive training organized by the brokerage.
  • You will have to buy signs, show homes, and post ads. This feature is similar to typical real estate brokerage firms.

The 100% commission model works because with virtual brokerage there are fewer moving components and low overhead costs. Therefore they can easily settle with a basic transaction fee rather than a hefty sales commission per sale. Several online brokerage firms charge a monthly fee, while a few offer agents a commission structure to choose from.

How beneficial is the 100% commission realtor model?

The main advantage is the commission you get to keep on every property sale. Rather than splitting the commission every time a deal is closed the broker gets to keep the majority of the earnings. They have to pay a transaction fee that is low and it makes a huge difference in their income.

Another great advantage for the broker is they become independent and their own boss. Being a part of a typical brokerage firm, you have certain limitations to consider. On the other hand, with the 100% commission model, you are an independent agent. Set your own appointments and showings. You gain flexibility in when and how to work, what to charge, and plan your overall strategies. Other things to consider are –

  • Total transparency of what you pay to the brokerage.
  • Accept industry and sales training on your own terms.
  • No pressure for using in-house brokerage service.
  • Flexibility to build a personal brand as a real estate agent.
  • No concerns about completing the sales quota to fulfill the agreement.

Several 100% commission realtor firms offer the same service as traditional real estate firms but are an option rather than mandatory. For example, you can pay a fee for placing ads or supplying signage, or scheduling appointments. You can choose services and create support rather than splitting commission for services you don’t always need.

The 100% commission model is a great opportunity for agents aiming to break from tradition and choose their own journey down the real estate lane. It is wise to understand what the high commission model is to decide if the switch is a good move for you or not.