Broker and agent splits

Agent commission mainly depends on brokers, people or agencies who hire agents, who receive payments for services rendered during property transactions. Some agents and brokers will agree on a 50/50 split from the gross commission received by that broker during the transaction. However, there is no average percentage or norm to go by and the split may vary in certain circumstances. Additionally, real estate commission, calculated as a percentage of the property’s selling price, can also vary depending on the brokerage. Then the buying and listing brokers involved in the deal would each split their cuts with their respective agents.

So, for example, if a transaction involved a home listed at $250,000 with a 5% rate, that $250,000 would be multiplied by .05, then divided by two. This would leave each broker and agent making $6,250 from the deal. Take away federal and state taxes, as well as office expenses, and you’ll likely end up with about $3,000-$3,500 in net income though.

Any split is negotiable, however, depending on how much business you end up bringing in, with some agents garnering a 90% split for their efforts. But don’t get greedy. Sometimes sacrificing a bit off your split could prove beneficial as you will be provided with improved broker services and guidance with marketing. Brokers are there to help you make money, not take it away from you.

Referrals

Before you and your broker split commission, a referral fee must be deducted should multiple brokerages be involved. This referral fee originates from one brokerage referring a client to another brokerage in exchange for receiving commission shares earned from a sale while representing that client. The percentage should be subtracted from the gross commission from a property sale before the agent and broker negotiate their own split. A referral fee usually is 25% of take-home commission received after a deal with the client is agreed. Once this fee is removed from the equation, negotiations between agent and broker become more fluid as you split remaining commission earned from that deal.

Other methods

You can get 100% commission from a sale. But you will have to pay a desk/office fee monthly to your broker, so you don’t technically get to keep that 100%. It’s usually advised, especially to newer agents, to steer clear of this model as those desk and office fees could cost four figures a month. Citing the earlier example, you would receive $12,500 from the deal instead of $6,250 but will have to pay over $1,000 a month for office fees and operations costs. Such fixed costs become a burden and prevent you from making what you deserve.

Sometimes it’s tough to know your true worth, but you should always try to maximize it. With Premier Commission, you can reach your full earning potential. Find out the average real estate commission you are entitled to and make sure you don’t miss out on a dime. Contact Premier Commission to learn more!

The real estate market might be tough and competitive, but it’s also a great space for great success. When you’re in real estate, each agent has their own personality and style of getting things done, however those poised for success all share some common practices. Check out this top list of must-dos:

Build and Maintain a Great Network

Successful real estate agents understand that you can’t always wait for leads to come to you. They know that every potential client, contractor, lender, insurance provider is a connection and they establish themselves within their social networks. They also stay in touch with past clients- sending cards or listings and open-house information. Everyone inside a realtor’s network has the potential to refer a client or become a client, so it’s important to cultivate and maintain it. Real estate is about building relationships.

Stay Available Past Regular Hours

A cut-and-dried 9 to 5 schedule just isn’t typical of the real estate market, and successful real estate agents understand that they’re on the clock all the time. Whether it’s fitting in a showing or following up on a hot lead, agents must take a land, sea and air approach. Not only do they make immediate contact with potential clients, but they’re always there to answer questions and remain accessible through phone, email, text, skype or whatever method of preferred communication 24/7. With a robust network, new leads can come in at anytime, so an effective response level is necessary to close a deal.

Know Neighborhoods Inside and Out

Selling real estate is not just about selling land or buildings, it’s selling a new life. Clients don’t just want to know the details of a house, but is the neighborhood safe? Where’s the closest school? Is it public transit accessible? What are other properties selling for? Successful real estate agents are expected to be a “neighborhood expert” and possess intimate knowledge for both buyers and sellers. When selling to a family, know if there are other families in the area or playgrounds within close proximity. Positioning yourself as an expert on the area establishes trust and credibility.

Stay Up-To-Date on Digital and Technology

Part of being accessible is utilizing cutting-edge technology. Smartphones, iPads, unlimited data – whatever it takes to make sure realtors can work on the go and stay paperless. This also translates into paying top developers or SEO agents to create high-ranking websites or paid advertising campaigns. Nowadays, an online presence is invaluable. Most successful real estate agents are aware of digital trends like blogging and social media best practices, and the right technologies to carry those off.

When it comes to being a successful real estate agent, each professional has their own methodology. To stay competitive, realtors take these best practices and often incorporate them into what they’re already doing. Contact us at Premiere Commission to learn more today!

Virtual reality is most often thought of as something specific to gaming and learning, but it has a lot of applications in the real world, particularly real estate. Based on the initial implementation of virtual reality by real estate companies, it is helping to address issues that have plagued the industry for decades.

The Problem Virtual Reality Solves

One of the biggest problems with the industry is that most people are not willing to make the final purchase without seeing the property. Because that usually means traveling and dedicating a lot of time into the endeavor. Given so much time to consider their options, people are more likely to talk themselves out of something.

There is also the problem of customers being deeply disappointed by a place once they arrive. The more negative reactions they have to a property, the less inclined they will feel toward the next property. By using virtual reality, real estate agents can easily remove both of these problems.

Potential Buyers Build Viewing Around Their Schedule

Technology has made instant gratification more of an expectation than a work of science fiction. People like to be able to get an idea about a product or services without having to build their entire day around that. This has been impossible for real estate because they had to physically go to the address to get a feel for the place. Drawings and pictures just don’t convey the experience. Virtual reality for real estate gives them that experience.

Potential buyer swill be able to access the virtual reality version of the home. They can take a real virtual tour, checking the different places of the home and see just how big each of the rooms are. They can begin visualizing the changes they would want to make to carpet, wallpaper, and bathrooms. They could do all of this around their current schedule. Instead of setting aside an entire day, they would be able to work it into a short break.

Simplifying the Process of Elimination

Of course buyers will probably still want to see the property before making a purchase, but virtual reality will make it easier to eliminate properties that don’t quite meet their needs. This will mean that time with customers will be much more productive because their interest will already be higher for the properties they view.

The change will also free up more time for real estate agents, which could translate to being able to help more customers. You won’t need to schedule full days to take a would-be-buyer to six or seven homes. Instead, you will be able to focus on taking them to a couple of their top choices.

Looking to learn more about the future of virtual reality and real estate? Contact us at Premier Commission today!

1. Adjust Your Pricing Accordingly

You need to stay afloat, and that means you need to consider pricing more towards the median range of comparable properties. You may even go lower and price around the lower end of the average. This will draw attention to the property and possibly bring in some interested parties.

2. Upkeep the Property and Work On Curb Appeal

Even when things are slow, aesthetics can make all the difference. Make sure to keep the property clean and maintained, inside and out. Additionally, you can try to add a little curb appeal with a few inexpensive upgrades.

• Paint the door or trim
• Put in a new or unique mailbox
• Plant a tree, flowers, or other foliage
• Keep the yard manicured
• Consider adding path lights
• Keep the windows clean
• Keep the driveway free of debris

Small things can make a big difference to someone on the fence about which home in the neighborhood will work best.

3. Embrace Flexibility in All Things

If you want to close when the market is slow, you need to show some flexibility. This isn’t just about pricing. Although, being flexible with the terms of sale can help a great deal.

If a potential buyer says they want something a certain way before they buy, then do what you can to make it happen. If you cannot, then come up with alternatives.

Offer deals, and go out of your way to see what’s possible and what isn’t. You may have to put in a little more legwork than you’re used to, but it will pay off for you in the end.

4. Keep Working On Your Business

Keep going to the office and working on your business. Take some time to do research, stay up with changes. See if you can find other paths to selling or earning funds.

The internet is your friend when things are slow. See what others are doing. You’re not the only one in a slump; another in your field may have some real relevant insight for you. If the slump took you by surprise, educating yourself a little can help you come up with a plan for the current one and future slumps to come.

5. Actively Seek Out Buyers

No matter what’s going on with the slow real estate market in your area, there are always potential buyers. If you typically sell residential homes to families, then consider other types of buyers.

For example, there are people who want places suitable to rent out, or people who make their money doing renovations and flips. Stay alert for the possibility of a sale outside of your normal circle of influence.

6. Consider a Commission Advancement

A commission advancement can give you access to cash before you close. These types of advances can make all the difference between keeping your business afloat when it’s slow, and you having to fold. A commission advance is not a loan, but rather a way to receive your cash early.

A commission advance can come in quite handy while you work on other aspects of your business during a slow buyer’s market. If you want to know more about how commission advances can work for you and your business, contact Premier Commission LLC today.

Tips for Effective Cold Calling

• Call during business hours- The purpose of real estate cold calling is to reach a live person to deliver your message, and generate the lead. To achieve this, you should prospect during regular business hours and get the direct line of the individual you are attempting to reach.
• Be persistent- When reaching out to potential leads, it is important to be persistent, without being annoying. Personalize your message and maintain a constant flow of conversation to ensure your message is received.
• Utilize an effective script- Once you reach your intended lead, you should be prepared with the appropriate script. A compelling script should be quick, non-offensive, easy to understand, and tactful.

After a productive cold call, many real estate agents generate sales and commissions. This, of course, is the key to your success as a real estate agent.

What Not to Do When Cold Calling

If you are a busy real estate agent looking to generate a significant amount of leads through cold calling, you are facing hard work. The process of real estate cold calling goes beyond picking up a phone and blindly dialing. If not done correctly, agents can lose the lead and the potential for earning commission. To ensure these things do not happen here is what not to do when cold calling:

• Cut out the small talk- Avoid asking questions like, “Is this a good time,” or “How are you,” this is an excellent way to lose control of the lead. Develop a powerful opening line that gets directly to your point. Establish a clear objective and do not stray from that goal.
• Don’t talk too much – Once you have clearly identified and explained your purpose, answer any questions you have quickly. Avoid the temptation of talking too much or giving lengthy responses to questions.
• Don’t use the yellow pages – Although it costs money to purchase a list, targeting your niche is a better approach than opening the yellow pages and dialing.
• Focus on bothering people – As a real estate agent it is important to stay focused on the task at hand. You may be calling up to a 100 people a day, if you focus on worrying about annoying them, you will not be able to make sales.

When done correctly, cold calling can increase the amount of leads generated and improve the amount of sales in the real estate market. If you are an agent, you understand the benefits of advancing your commission check.

Contact us at Middlgate Funding to find out more on how you can convert your pending receivables into cash!

43% of buyers choose their property online, so participating in the digital revolution is no longer optional. There are a number of ways to participate in the e-commerce realty boom. By:

• Collecting and managing clients and properties online as a sole proprietorship.
• Crowdfunding property development.
• Hosting your real estate business online while your realtors work remotely.
• Flipping properties using online resources.
• Hosting auctions online.

The Information Age

Today property records are accessible by buyers and sellers alike in a matter of seconds, and an online real estate agent isn’t a necessary part of acquiring that information anymore. Since data is freely available, realtors can now work harder at translating that information in meaningful ways.

Technological breakthroughs have created a fully integrated selling experience. Every part of the process fits into the next like a puzzle piece, from outbound marketing to administration. Data analytics put incredible power into your hands, letting you see, at a glance, which areas are offering you the best returns, which you’re investing the most time in, and which property types are delivering peak success.

Web Platforms

Managing a business using online portals and the cloud is not only simpler, but more economical as well. No online real estate agent needs to limit themselves to a single geographic area. Virtual tours and online communication make it possible to snag clients shopping outside your zone. This has caused an acceleration in the industry in several ways.

• Teamwork is easy to control when office administrators can feed all assignments into a shared platform.
• Most tasks can be carried out remotely, limiting travel costs.
• All information and clientele are at your fingertips as long as you have a smartphone in reach.
• Comparisons between properties are easily achieved.

Development

If you’re an online real estate agent who previously lacked the funds to develop your own property, the internet has levelled the playing field. Pioneers in the industry are using crowdfunding to make their wildest development dreams a reality. Any realtor willing to put time into their campaigns can participate in commercial real estate markets that were once only accessible by large institutions.

Tools

Mobile applications give you a comprehensive list of properties in any area you enter. The cloud puts your files in reach from your phone. Your new contacts can be fed into an integrated client list the moment you connect with them. If there’s a task for which there is no application, you can develop or commission it yourself. Business management has never been more streamlined.

The Client-Led Realtor

Before clients could educate themselves about everything from financing to available properties from their own living rooms, it was the realtor who was in charge. The internet has changed that power balance. 99% of property buyers begin their search online, and they’re educated enough to play a proactive role in their house hunting. For those who are passionate about real estate, the internet has shifted focus to where it’s most interesting: on the property itself.

Looking for more information about online real estate agents? Contact us today at Premier Commission!

1. Not Blogging
   Helpful, relevant blog posts can help you build relationships with clients and potential clients as you will be able to position yourself as an authority. You can also use your blog to drive traffic to your website. Many agents avoid blogging for fear of wasting their time trying to compete against the major real estate portals; these people may see blogs as obsolete for marketing purposes. However, blogging can still be effective despite the fact that blogs are no longer a novelty.
2. Not Exhausting the Potential of Social Media
   This is a problem that you may think is limited to older, technophobic real estate agents but you would be wrong. A rookie real estate agent may also fall prey to this error. Not taking advantage of social media is a major mistake as it is very effective for showing homes to clients who would never have come across the location otherwise. As real estate agents, we are already heavily dependent smartphones, tablets and laptops for work so there is no reason that we should not take full advantage of the benefits provided by social media. For starters, work on making it easy for visitors to share your content and to follow you.
3. Not Focusing on Function Over Form When It Comes to Your Website
   Your goal should always be on the quality of your content. Of course, this does not mean that you should neglect style; instead, you should try to have both. Provide visitors with information like home price comparisons in the neighborhood as well comparisons with national average home prices. Statistics, graphs and infographics can be used to simplify large amounts of complex data and enable easier comprehension.
4. Having a Forgettable Website
   The idea is to have a website that your visitor will find so useful that they keep returning to it. As a rookie real estate agent, you can make a name for yourself by providing quality content in a niche area. Your website should be easy to use and provide high-resolution photos and videos as well as well-crafted descriptions.

5. Not Posting Frequently Enough
   The key to building a strong following is to post quality content regularly. Have a posting routine so that you have fresh content up on at least a weekly basis. This will help your audience to remember you and will keep them subscribed to your site.

Note that even experienced real estate agents can be prone to the errors above. If you are presently making one or more of them, the key is to learn and move on. Mistakes are unavoidable for those new to the industry; there will be no limit to your potential for success once you know how to avoid the more serious ones.

To learn more about the rookie real estate agent mistakes you can be avoiding, contact us at Premier Commission today!

To-Do Lists

Probably the single best way to keep track of your tasks and goals is to create to-do lists. Many agents recommend creating multiple lists for both short and long-term goals. First, create a one or five year plan that has all of the major goals you are working toward in a general sense. Frame it, put it up on the wall or just keep it somewhere where you can see it and be reminded of where you area headed. Next, create a to-do list for weekly tasks, things you need to check up on and errands you’ve been putting off. Lastly, create a daily to-do list that really nails down the tasks you need to take care of right now, today. When all of your daily tasks have been marked off, turn to your weekly list and see what you can get knocked out in your free time. Don’t forget to include family time and vacations on your to-do lists too!

Disconnect

For the sake of your sanity and mental health, take some time each day to disconnect from your phone, email and social media. Use a productivity app that rewards you for not wasting time, and set a timer for yourself. Whether it’s an hour or just thirty minutes, use this time to really focus on the most complicated tasks without any distractions and get as much done as possible. Staying organized on a day to day basis will ensure that you don’t waste this time tracking down information or trying to decide what needs to get done first.

Create Partnerships

You can’t be everywhere at once. Building a team of other agents and assistants in your area can help relieve the stress on you. Find partners with offset schedules, different availability, and located in different parts of town. Then when you have a client in need, you can refer them to your partners instead of having to make a long commute or cancelling family plans to make time for them. Splitting commissions with your partners is not such a bad deal if they are able to throw some business your way that falls within your normal work hours and gives you more flexibility throughout the week.

The key to maintaining a solid real estate agent work life balance is knowing what parts of your life are most important and how much time you want to spend on each one. By prioritizing your family alongside your work in your long term planning, you have the ability to check in on yourself and see how you are doing as you move down your to-do list each day. Working with other agents in the area will not only improve your real estate agent work life balance, but will also help them do the same. This mutually beneficial work relationship can help you reach a larger customer base and actually improve your income while reducing your work hours.

Premier Commission offers commission advances for agents who want to build their businesses. For more information about this useful cash flow tool, visit our website or call us today to speak to an agent.

How Instead Of Why

By time you are starting your first job at a real estate brokerage, you have spent lots of time in classrooms, studying and taking tests. All of that information is imperative to making real estate deals because you need to understand the rules and regulations that make deals happen. Unfortunately, all of that information only tells you why you have to do things a certain way, but it doesn’t teach you much about how to actually make things happen. A real estate mentor can help you learn the negotiating skills necessary to close deals, the marketing skills necessary to get your clients, and the time management skills to keep you from getting overwhelmed once the responsibility is on your shoulders.

Mutually Beneficial Partnerships

Building a good relationship with a real estate mentor now can be an invaluable way to create a lasting partnership for years to come. When you’re in a crunch and need advice or recommendations, you will have someone that you can count on to help you out. After you have made it on your own for a little while you may be able to give your mentor advice on new marketing strategies and tools that you have found useful on your own. No matter what the topic, sometimes it’s just nice to have somebody that you can share stories with and gain insight from on a personal level.

Learning Hard Lessons

Of course, the number one reason to take advantage of a real estate mentor opportunity is that you can learn from their mistakes without having to make them on your own. If your real estate mentor has been in the business a long time, they will be able to give you a cut and dry rundown of what to expect once you are on your own. Everything from market changes, unruly clients, legal battles, pay and more is on the table. An experienced mentor will be able to answer your questions without overselling the job because they know what it’s like to really be out in the field.

Most large real estate agencies have some form of mentorship already built into their structure. They want you to get started with the best available information and tools they have, and that means letting you learn from their top agents. If you aren’t working for an agency that has already made this a priority, it never hurts to ask a local agent to be your real estate mentor. Many of them remember what it was like in the beginning, and they will be happy to help you out or can point you in the direction of someone that they believe is highly qualified to mentor you. Either way, taking the time to get familiar with a real estate mentor in your area will provide you invaluable knowledge and experience that you would never be able to get in a traditional classroom environment alone.

For more information about getting started on your real estate journey with a commission advance from Premier Commission, visit us online or call today at 1-866-309-5582. We are here to help real estate agents build their businesses by giving them the tools they need to succeed today.

Cover the Basics

Many first time home buyers, or buyers who have not purchased a home for many years, may not be familiar with the various steps in the purchasing process. Before you ever set foot in a single house with your client, sit down and walk them through all of the nitty gritty details and make sure they understand the financial implications of what they are about to take on. For most people, owning a home is a major part of their dream, but is also the single largest purchase they will ever make. Unease with the basics at this stage will only complicate things down the road.

Prioritize Features

To ensure that your clients are looking at the right kind of houses, make sure you narrow down your search efforts to revolve around the most important features. Make a list of their top five needs in a house. Space, location, budget and storage are typically at the top of this list. Make sure that the list is prioritized so that you have a little bit of wiggle room with the least important features, whether that means that the house is located an extra mile from work, or that it has a smaller closet than they would have liked. As long as the house meets the buyer’s expectations for their primary concerns everything else can be evaluated on a case by case basis.

Dig

Once the buyer has decided on one or two houses that they are seriously considering, your job is not done. Help them do a little bit more research about the homes in question and really dig to determine if this is the right choice for them. Home buyer’s remorse often comes into play when the owner learns about traffic, troublesome neighbors, or other issues that are not normally disclosed in a home listing. Look into insurance claims and maintenance information regarding the house, ask the neighbors why the previous residents moved away and get familiar with the area.

Purchasing a home means putting down roots for young families, and creating a comfortable place to retire for older buyers. Home buyer’s remorse can keep your client from being completely happy with their purchase if they feel like they didn’t have enough information before reaching the closing table. As an agent, your job is to walk buyers through the process and give them insight based on what you have learned from previous purchases and common issues. Asking the right questions and pointing clients toward the information they need to make an informed decision will earn you a reputation as a trustworthy agent working on behalf of your clients.

Premier Commission provides commission advancements to real estate agents who need money to get their businesses off the ground. For more information about our services, visit us online or call today at 1-866-309-5582 to speak to one of our agents.