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The Easy Guide to Understanding Commission Advance Fees

Commission Advance Fees Explained

With some companies commission advance fees can be complicated or misleading. For established companies in the field, the purpose of a commission advance is to provide real estate agents and brokers with more cash at a lower cost than the competition. A good commission advance company will have a simple and transparent structure: no hidden fees whatsoever, including holdbacks, wire fees, admin fees, application fees, minimum fees, or exit fees. That is what differentiates a good commission advance company from one that may be trying to mislead you.

Commission advance fees are typically calculated as a percentage of the commission advance amount. The percentage applied to the advanced amount depends on the number of days from advance to closing date. Here are Premier Commission’s commission advance fees based on the number of days from advance to closing date:

·         For periods up to 30 days, the percentage applied to the advanced amount is 5%.

·         For periods longer than 30 days and up to 45 days, the percentage applied is 8%.

·         For periods longer than 45 days and up to 60 days, the percentage applied is 9%.

·         For periods longer than 60 days and up to 75 days, the commission advance fee is 11%.

·         For periods longer than 75 days and up to 90 days, the commission advance fee is 12%.

·         For periods longer than 90 days and up to 120 days, the commission advance fee is 16%.

Usually, commission advance companies work with periods up to 90 days, but there are also organizations that accept periods as long as 120 days, which is a huge advantage given today’s economic climate.

When you work with a well-established commission advance company there should be no penalty for repaying an advance before closing. In addition, a commission advance company should not restrict the number of advances outstanding at any time. So if you close more deals, you should be allowed to get your commission in advance on one or all of your deals.

The main feature you should be looking for in a commission advance company is a promise of NO hidden fees. Remember that hidden commission advance fees can come in many forms, such as administration fees, reserve hold-backs, or wire fees. Regardless of their name, commission advances should have one fee only, a discount fee, and that is all. That fee may vary depending on the number of days from advance to closing day.


At Premier Commission, our goal is to provide access to simple and easy commission advances with no hidden costs. Contact us today to learn more about our commission advance fee structure and get started with your own advance.

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