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Understanding How The 100% Commission Broker Model Operates

Traditional real estate brokerages give their agents a percentage of the commissions. In most cases, the majority of the money goes to the office of the real estate broker. There are also models where the sale's commission is split evenly between the agent and real estate broker's office.

The third option, in the real estate industry, is the 100% commission broker model. In this model, the agent receives 100% of the entire sale's commission less some administrative file fees. Let's look at how this is possible to understand the 100% commission broker model and its operations.

How the 100% Commission Broker Model Works

There are several ways the 100% commission broker model can be structured. Some companies do not provide office support to their agents, so they are able to keep expenses down. This method also allows them to charge agents a low monthly fee to use their desk space.

Other companies will charge a flat fee for each sale completed ranging from low to high, depending on the broker you are working with. In either case, the agent pays out money to the brokerage to be one of their associates. The brokerage generally seeks alternate revenue streams either through subscription fees, escrow, loans origination or referral fees. Over the past several years, this method of real estate handlings has become quite popular.

How to Know if the 100% Commission Broker Model is for You

If you are an experienced agent and have built a clientele base providing you a successful business, this real estate model could be perfect for you. If you are an agent who does not need in-office training or a referral program to receive breaks on fees, this commission model will also work perfectly for you.

Many agents just starting out need in-office training and interaction with other agents in the field. Learning from other agents is a great way to build your career when you are first starting out. Stanfles Realty allows you to meet and train with a local broker for one-on-one training. You will work from a physical branded office with a conference room and desks in downtown LA, San Diego and Newport Beach.

Working with a premium 100% commission broker, such as Stanfles Realty, allows you to have the flexibility needed to negotiate with your clients along with the freedom to work either full or part-time. You will also receive full broker support 24/7 with no monthly fees. The fee structure with Stanfles Realty is one of the most competitive in the market, and our admissions are open only to motivated agents.

What to Consider When Choosing a 100% Commission Broker 

To cover the costs of offering agents the necessary technological and physical tools to run a real estate business successfully, different brokerages use certain methods or combinations of fees. You will want to check how the broker you are considering covers these costs to see if they are a fit for your real estate needs. Some of the methods used to cover these costs include:

  • Charging a per-transaction fee

  • Charging a fixed or flat monthly fee

  • Desk or office space fees

  • An annual flat fee

  • Specific handling fees

When you are considering which 100% commission broker to work with, compare the services you will receive with the fees. Some firms may lack the technological tools you will need to be successful; others may charge fees that will significantly cut into your commissions, making them less beneficial than a traditional or split-fee brokerage.

Stanfles Realty can provide you a very competitive flat transaction fee structure. We also offer access to branded offices throughout the State of California. You will appreciate our source of leads which include both overseas and domestic channels when you become an associate with our firm.

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