The flat-fee model has been all the buzz in the real estate world in recent years – and for a reason. Besides offering sellers and buyers a more flexible, less risky, and custom realty service, this brokerage model provides more benefits and advantages to real estate agents as well.
Flat-free real estate brokerages are an excellent choice for both seasoned realtors who seek to join a reliable and reputable realty agency, and newcomers into the industry looking to gain experience and insight into the market. By often providing a variety of state-of-the-art tools and sharing tips and advice to their agents, these brokerages help you grow as an individual professional.
But enough with the generals – let’s dive into what the flat-fee brokerage model is and what benefits can you expect upon joining one.
What is a Flat-Fee Real Estate Brokerage Model?
The flat-fee realty brokerage model entails agents paying a certain, previously specified, amount of money to a broker, only upon completing a transaction.
The flat-fee real estate brokers are 100% commission companies, meaning real estate agents are entitled to the full commission upon transaction. Different brokerage fee models entail varied payment structures, but generally, agents are required to pay either a monthly, also known as a desk fee, or a yearly fee to the brokerage.
The flat-fee brokerage should be differentiated from a discount broker. Despite offering competitive rates to both agents and sellers, flat fee and discount brokers have little in common. Discount brokerages have lower commission rates compared to full-service brokers, yet they do not provide investment advice or analysis on a client’s behalf, something which flat-fee brokerages usually do.
At NB Elite Realty, agents receive 100% commission after finalizing a deal, and they are only required to pay a one-time small yearly fee. The transaction fee is structured in a manner of a sliding scale, starting at $199 and increasing marginally along with the sales price.
In practice, for a transaction of up to $500,000 an agent is required to pay a $499 transaction fee. Moreover, with 100% commission paid at closing, and no CAP, agents are bound to profit with each sale.
However, not all flat-fee modeled brokerage agencies are created equal. Not only do some brokerages that advertise as flat-fee have concealed costs and undisclosed payment arrangements, but they also offer little value to agents and sellers alike as they rarely implement features and benefits that other full-service brokerages do.
Thus, let’s see what benefits and opportunities a true flat-fee real estate brokerage offers to its agents and why you should continue your realtor career in such an agency.
Yield More Profit
In the traditional brokerage model, the commission earned upon a transaction is split between the realtor and the agency, usually between 50% and 80% agent-wise. Yet, brokerages that follow the 100% commission model usually charge a small monthly or yearly fee, and a flat fee per transaction.
Obviously, the flat-free model is much more advantageous to agents. Primarily, it presents a low risk as agents are required to pay only a small amount of money on a monthly or a yearly basis for which they receive expert guidance and help from the brokerage.
There’s also a predefined flat fee, that at NB Elite Realty, is only 0.1% of the sales price. The rest, i.e. the 100% commission, goes to the agent.
Get Expert Real Estate Education
Whether you are a newcomer into the real estate industry or an experienced realtor with an enviable CV, you are aware that the realty market is incessantly changing and understand just how crucial it is to constantly educate.
This is where flat-fee brokerages excel. From free investment training aimed at agents who are interested in becoming investors, to educational webinars and community events where agents network and share experience.
Besides, for a small monthly/yearly fee, you receive exceptional staff and broker support, as well as the best advice on the process of lead generation in the real estate domain.
Access the Hottest Tools for Realtors
Many successful flat-fee brokerages use a variety of tools to streamline and optimize their resources, and many of those are at agents’ disposal as well.
From CRM to lead generation tools, realtors can choose from a number of software that suit your needs.
You’ve probably heard of – kvCORE, the #1 real estate platform. And if you haven’t, it’s high time you did, as this tool offers an abundance of useful and ingenious features to help your business, such as:
- lead generation
- marketing materials
- customizable website builder
- customer relationship management (CRM)
- in-depth analytics
- transactions management
- listings management
kvCORE is a comprehensive tool that keeps the everyday tasks and paperwork of real estate agents organized, simplified, and efficient, helping you focus on meeting the needs of your clients.
At NB Elite Realty, this astonishing platform comes at an amazingly low price, together with other amazing benefits, such as access to marketing materials via Vistaprint, free access to ListHUB, and the NB Elite Realty training interface, available to you nonstop.
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Joining a flat-fee brokerage offers agents immense advantages in terms of profit, education, networking, and state-of-the-art tools you’re eligible to.
Regardless of the previous experience, agents face low risk when becoming a member of this brokerage type – with only a small monthly/yearly fee, and a specified transaction fee – agents can profit and gain their financial freedom even during the slower times.
Access to advanced tools and software can help agents stay organized and efficient, whereas various events and webinars allow you to get hold of the intricacies of the real estate industry.
All of the above amounts to the same conclusion – not only are there many reasons why agents should work with a flat-fee brokerage agency, but these brokerages represent the future of the real estate business and an invaluable, reliable solution for realty agents.