As a real estate agent, your career can have its highs and its lows. If you don’t have a strong sphere of influence you may experience down times that can break the bank if you aren’t out hustling every single day. It can be even harder for newer agents who are looking to begin building their sphere of influence from scratch.
With these down times faced by agents, some look to supplement their income with a commission advance. The question is – how much will that commission advance cost you in the end?
The fee you pay for your commission advance can be determined by a multitude of factors. How long have you been working in real estate? How many transactions the last 12 months? When is the closing date? Are you the listing or buyer’s agent? All of these and more can determine how much your commission advance fee will be.
If you are considering taking a commission advance on a transaction your best bet is to shop around and see what the different commission advance providers are offering. Just like anything, you want to know who is offering the best deal and take your business to the company that makes the most sense for you.
Typically a commission advance will cost you anywhere from 5 – 20% of your net commission. Providers usually base the percentage they charge off the amount of time left until the closing date. Agents with a strong history of past sales will find they may receive a better quote for an advance from some providers.
With that said, if anyone is charging you 20% you’re better off taking your business elsewhere from the beginning. With Zen Commissions, your commission advance always starts at the fee of 5% no matter the commission size, type of sale, etc. After the introductory period is up you advance moves to a 12% fee as long as it’s paid back at closing or within a set range of time.
Let’s say you have a closing scheduled for 14 days from today and you’d like to receive a commission advance on the deal. How much will this cost you? If you were to advance $5,000.00 from your net commission on the deal in two weeks you’d owe Zen Commission a total of $5,250.00 at closing, or a 5% fee on top of the principle amount. That’s a great deal!
With a service that is unparalleled by our competitors, Zen Commissions appreciates the chance to earn your advance and looks forward to establishing a mutually beneficial relationship with the agents we work with. Please don’t hesitate to contact our team if we can assist with your commission advance needs!
Get started by applying for a commission advance today!