In today’s economy a new business model of real estate brokerage has emerged. Due to the decline of real estate agents income, most of the traditional real estate brokerages are failing to provide adequate financial support to their agents. High ongoing overhead costs put pressure on most brokerage houses signaling that it is time to balance their budgets in order to stay in business. Unfortunately, most brokers are failing to act and as a result, real estate agents are the ones who are picking up the tab.
Recurring fees, commission splits and additional fees has become a plague for agents in today’s economical environment. Most of today’s real estate transactions bear lesser commissions and most agents see fewer transactions per month. And yet, traditional real estate brokerages keep their financial policies intact, refusing to adapt to California’s real estate environment. But enough about doom and gloom, let’s candidly discuss how we can address the issue at hand.
Surrendering to the pressures is not going to solve anything. Modernizing the business model of a real estate brokerage can solve the problem or at least lesser the financial impact on real estate agents. This is what makes us different, instead of placing the burden of overhead on the shoulders of our agents, we simply have eliminated it. At Dynasty RE Online we don’t believe in agents supporting the broker, we believe in the broker supporting the agents.
This is how we conduct our real estate business:
- We eliminated all recurring fees – You as an agent do not pay us anything on a monthly basis. We are taking care of our expenses, so you don’t have to. By reducing overhead we eliminated any need to charge our agents for the office and support.
- No commission splits – As an agent you will get your 100% commission on each and every transaction. Are you a beginner agent? No problem, you get 100%. Are you a superstar who can close 10 transactions per month? More power to you! Keep your commissions!
- A small flat $495 brokerage fee is deducted from each transaction. Have you sold a 3million dollar property? Congrats! We only will deduct $495. No gimmicks, no hidden charges.
- Competent Broker Support – Do you need a document, or advice? We are providing all our agents with support that is offered by traditional brokerage office at no additional cost! Yes, whatever your traditional broker can offer you in terms of support you will get at Dynasty RE Online free of charge and you will get it faster!
- You are your own boss – We do not provide with office, cubicle, parking, coke machine, paper clips and copiers. If you are a true realtor, you know that you make your money in the field, not in the office chair. Our policies support agents who want to make the most money. Agents who only can conduct business from the traditional broker’s office will have to stick with the traditional fees and commission splits which means to become less competitive.
This is how most traditional brokers conduct their business:
- You are paying brokers expenses. You are paying for office lease, you are paying for the cleaning crew, you are paying for coke machine, for the stapler on your desk, for the conference room. What if you had a bad month or two? Can you stop paying your broker? Not really, you are still paying. What if you barely paying your mortgage? Will you stop paying your broker then? Highly unlikely. All of the fees due will be collected from your next commissions check.
- Commission Splits – These differ from office to office but if you are a new agent, you certainly will pay your dues. Fifty percent, thirty percent – whatever your broker deems necessary. Every thousand dollars you make will end splitting and you will get what’s left. And again, when you have fewer transactions, not established pipeline and less money per transaction, not to mention more paperwork due to new regulations, what are you really left with?
- Many brokers have sales minimums which usually result in lesser splits for an agent. Now that’s really something. Your monthly income can become a rollercoaster with very little excitement during the ride and a crash at the end.
- Traditional Broker Support – That varies from office to office and in many cases desires to be better. But have you asked yourself, why in the world do you need to take a 30minute drive to the office to pick up a form or to knock on your broker’s office door to ask a question? Haven’t these people heard of Internet or a cell phone? We have set up our support system to get you everything you need fast, documents, information, advice, just call. We don’t mind talking to you if you are wearing slippers and pajamas while sipping coffee on your back porch. It’s ok, just call us.
If you like getting stuck in traffic on your way to work or you admire the looks of standard issue office furniture, or you can’t get enough of the latest gossip about secretary’s personal life, the traditional broker office is a fantastic place to be. But if you are aspired to make money in real estate you may want to skip trips to the office and spend that time on generating a few leads, being on the field, shaking a few hands, closing a deal or two, you know, what real estate agent should be doing with their time.
So, can a productive agent live without a physical broker’s office and make the most money? You betcha! Top agents have done this for years.