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!

If you are faced with a new real estate website design project, here are the things you should consider before you get started.

Research

Before you get started, take the time to research other real estate website designs. Look for commonalities that make them better, as well as the unique elements that make a website stand out compared to the competition.

Be aware of the latest trends. The current trend may become the expectation within a few years. That is exactly what happened with responsive and mobile designs.

Branding

One of your first considerations for your real estate website design will be how you add your branding. Some companies do it by using their company color, others use fonts and characters that express their company’s identify.

For real estate, you are the brand. This means you will need to include pictures of yourself in several places. You should also let some of your personality shine through in your site.

Layout

The way your layout each page will affect the number of people who continue to use your site. While the traditional side bar is great to help with navigation, more sites are opting to have a home page that looks different. An increasing number of home pages are the site map. Each of the pages are broken up into short sections on the home page. These sections provide details about what users will find on the page.

This does mean that the home page is incredibly long, but this is no longer considered a problem. Since users are already accustomed to this kind of functionality because of cell phone, they have become accustomed to getting what they need in one place instead of having to flip through several pages.

Your Platform and Technology

One of the most critical elements of real estate website design is the platform you will use and the technology that will access it. Since your site needs to be interactive, you need a robust platform. WordPress is one of the most common because it offers a lot of solutions that you aren’t even aware you need in the beginning.

Ultimately, you want a platform that takes care of all the major areas of the website:

• User experience
• CRM technology
• Live listings

WordPress is popular because it integrates a lot of different technology for optimal results.

Content

This one is obvious yet all too often not considered element of real estate website design. You need to create a content plan for your site. It will help you determine how many pages you need, define what you offer, and how to use SEO most effectively. Since listings fall into this category, you need to have a plan before you start.

Integration

For real estate website design, IDX integration has become the fastest way to generate leads. IDX integration gives visitors a way to browse live listings and gives you a way to index them. It’s a handy tool that can make it much easier to see what is attracting attention.

If you aren’t sure how to proceed of if you would like some assistance, contact us to help get your website working for you.

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!

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!

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.

Prepare for the unforeseen

No matter how great of a real estate agent you are, you can come across rough patches when deals simply aren’t getting closed fast enough. You should prepare for this beforehand. For example, you should already have a resource to keep your finances steady if deals are slow, because trying to run your real estate business underfunded will cause serious problems for your real estate agent salary in the short and long-term. A real estate commission advance can help you prepare for unexpected expenses and keep you on track.

Expand your real estate education

No matter how many years you have been an agent, there is always something new that you can learn (you should never assume otherwise). Even one piece of new information related to the real estate industry could be the key to unlocking untapped earning potential. As such, you should explore what kind of classes, books and other educational opportunities are available to help you increase your real estate agent salary.

Find new ways to market

Technology has evolved to provide professionals of all types with brand new ways to market themselves and their services. As a real estate agent, you should always be seeking to use the latest, greatest marketing tools for your benefit. These tools do not have to be complicated or expensive either. For example, simply launching a website gives your internet presence (and thereby your ability to be found) a huge boost; the occasional real estate post on LinkedIn helps boost your reputation as a top agent among your peers, and enhances your ability to close deals in your favor.

Actively expand your list of clients

Even if people already come to you seeking your services, do not settle. When someone searches for a real estate agent in your state, they may or may not find you. By actively seeking a larger number of clients or more high value clients, on the other hand, you place yourself at the forefront when someone needs a real estate agent.

Start your own brokerage firm

An outstanding way to expand your real estate agent salary is to create a mutually beneficial relationship with other brokers wherein they have an opportunity to benefit from your brand name and experience, and in exchange, you get a portion of the proceeds from the deals that they close. This is one of the best ways to expand your salary if you are an experienced, well-connected agent.

Become a real estate investor

You have spent plenty of time learning about the real estate industry, developing connections and becoming an expert in the area that you work in. If you are only using this to be a real estate agent for others, then you are making a financial mistake. You should also be using your knowledge, expertise and connections to close your own personal deals as a real estate investor. As an agent, you get to see firsthand the profitability of being a real estate investor, so why not improve your salary by investing in some property yourself?

Are you ready to take your salary to the next level?

You already have access to the tools you need to increase your salary. You just need to use them. For more information about how to improve your success in the real estate business, feel free to contact our team.

One of the most effective planning tools is a real estate business plan. Your business plan should be a place where you put your goals – both long- and short-term – down on paper.

Creating a plan forces you to think through where your business is headed and how you can reach your desired destination. It gives you a document to refer back to whenever you face unexpected challenges and need to get your business back on course.

If you’ve never created a business plan before, don’t worry. It’s not as difficult as it may sound. Here are seven tips to help you create your real estate business plan:

Have a mission. The first section of your real estate business plan should clearly state what your long-term mission is as a real estate agent. Why are you in business and what makes you different from your competition? Your mission could be to help new home buyers purchase their first home or to help investors find their next perfect property.

Establish your target market. Your marketing efforts will be more effective if they’re targeted to a specific group. Define one-to-three groups who will serve as your primary audience. Who are they? What are they looking for in a real estate agent? What are their concerns? If you can answer these questions, you’ll be able to market to them and serve them more effectively.

Do some self-analysis. A business plan isn’t just about defining your market, but also analyzing yourself. One way to do this is with a SWOT analysis. SWOT stands for: strengths, weaknesses, opportunities, and threats. Evaluate yourself in those four areas to understand how you can be a better agent.

Define your goals. Your mission statement is a broad overview of what you’d like to achieve. You also need to set specific goals to help you know whether you’re on track. These goals should be quantifiable and achievable. How many houses do you want to sell next year? How many new clients do you want to bring on-board? Use specific metrics that you can easily measure so you can regularly review your success.

Create an action plan. Of course, goals aren’t very useful if you don’t have a path to reach them. After you’ve set your goals, create a step-by-step plan for achieving them. If you want to sell 100 houses, how many meetings do you need to have each week? How many calls do you need to make? List these specific actions to guide your weekly and daily activity.

Outline possible future actions. You may have ideas about where you want your business to go in the future, but you may not be ready to implement those actions now. Maybe you want to form a team or hire a junior agent. Go ahead and outline those ideas in your plan so you can refer back to them often.

Review often. Your business plan doesn’t have to be a static document. As your business changes, so should your plan. Review it regularly and make changes as necessary so that the plan reflects your current goals and business situation.

When it comes to being a successful agent, an important aspect of any business plan is to have sufficient cash flow to keep on track. Get in touch with Premier Commission for more information about our commission advances for real estate agents. This is a great cash flow tool for your business.