What is the 100% commission real estate structure in Casselberry FL?
There are many different types of commission structures in real estate and many diffrents 100% commission real estate firms in Florida. Choosing the right brokerage is no easy decision as there are now many options and many different types of structures. We are going to over some of the main structure that a Realtor will have to choose from. Commission is not the only factor that should be considered; training, culture, access for help, are just a few of the other main factors to consider. The brokerage name is actual less important than you might think, according to NAR 98% of Buyers and Sellers DID NOT factor in their particular brokerage firm when deciding which Realtor to hire for their transaction. It is about what you can bring to the table as a Realtor, your skills and expertise. Your ability to show value and your daily routine is what makes the difference! Florida has a dynamic real estate market that has all kinds of real estate brokerages. Now, let’s go over the different types of commission structures and how you will get paid! We believe you will see why the multiple 100% commission we have at Young Real Estate are the best in Florida! Young Real Estate has 3 100% No CAP Commission Plans!
The Traditional Split
The traditional split could be a 60%/40% split for example with the Realtor getting 60% but with no CAP, meaning the split will not go up. The brokerage might provide other perks to incentivize a Realtor to join due to the relatively low amount of commission going to the Realtor. Many times, you will see this type of structure with smaller brokerages. Realtors typically leave this type of brokerage once they know what they are doing because there are many other structures that will pay much more for the same effort. These types of boutique brokerages typically have a brick and mortar location. They typically have additional fees taken off the top which cuts into the Realtors already low commission. These additional fees can be monthly, annually, or per transaction. A few examples: Set up fee ($150-$400), Monthly Fees ($50-$100), Annual Fee ($300-$1,100), Transaction Fee ($250-$500), E&O Insurance fee ($25-$150), Training fee (Additional 10%-20%), Desk Fee ($50-$150), Franchise Fee (5%-8% of gross commission).
The Graduated Split Compensation
The graduated scale could start at a 60% split then gradual go up in 5% increments based on production. They typically stop at around 85% or 90%. The Young Real Estate broker and founder Paul Young started at a graduated scale brokerage; he did however only spend one year there. These types of brokerages could be larger in size even though their structure is somewhat traditional. These firms normally have a brick and mortar location and try to incentivize new Realtors to join them based off their training and claim that their local presence will help them to be successful. Some high producing Realtors will stay at a brokerage like this once they hit the commission ceiling. Many do leave for higher commission splits once they get the hang of things however. They also typically have additional fees taken off the top of the Realtors commission. These additional fees can be monthly, annually, or per transaction. A few examples: Set up fee ($150-$400), Monthly Fees ($50-$100), Annual Fee ($300-$1,100), Transaction Fee ($250-$500), E&O Insurance fee ($25-$150), Training fee (Additional 10%-20%), Desk Fee ($50-$150), Franchise Fee (5%-8% of gross commission).
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The CAP Structure
The CAP structure is popular today but should not be confused with a true 100% no CAP structure. Many brokerages have variations of this model where for example could start with a 70%/30% or 80%/20% split with a $16,000 dollar CAP or $25,000 CAP (The CAP and split is decided by that brokerage). The CAP is the amount the Realtor must earn to be moved to a 100% commission for the rest of that year; the fees normally continue and the CAP typically recycles at the end of the year and starts over again. Some Brokerages with this model might offer a recruiting revenue shares which incentivizes the Realtor to recruit for the Brokerage. There are some brokerages that rather teach you how to recruit than to actually sell real estate! Some of these brokerages are publicly traded companies and offer stock out of the commission they are taking from the Realtor (anyone can buy any of their stock but in this case it is forced). Some of these brokerages have brick and mortar locations so have no physical office at all. Many of these brokerages are high on fees which can add up quickly! A few examples: Set up fee ($150-$400), Monthly Fees ($50-$100), Annual Fee ($300-$1,100), Transaction Fee ($250-$500), E&O Insurance fee ($25-$150), Training fee (Additional 10%-20%), Desk Fee ($50-$150), Franchise Fee (5%-8% of gross commission).
Side Note: We had a Realtor come in for an interview and we compared her total commission earned from the previous year versus our plan A. She was on an 80%/20% structure with a $16,000 CAP and additional fees. The difference in what she would have earned at Young Real Estate versus what she earned at her old brokerage was over $35,000 dollars!!! What could you do with that much extra money?
100% Commission No CAP
The 100% structure typically has a monthly fee and a set transaction fee per transaction (Realtors make significantly more). Some have no monthly fee but will have a higher set fee per transaction. The transaction fee is something that is typically charged to the Buyer or Seller by the Real Estate Brokerage (It typically will go to the brokerage). Young Real Estate, a 100% commission real estate firm, has 3 different forms of 100% commission to choose from and has no additional fees. Some 100% companies do not have physical locations (Young Real Estate does). Some of these brokerages charge additional fees like a set up fee, annual fee, or E&O fee (Young Real Estate has no additional fees).
Young Real Estate has 3 100% No CAP Commission Plans
You Can Earn More Than 100%!
At Young Real Estate our Broker Paul Young decided to go with multiple 100% structures where the Realtors can actually earn more than 100% Commission as a way to empower them to be more successful. This type of structure enables the Realtor to spend a lot more on lead generation, marketing, events, professional development, conferences, and investing in real estate themselves. When our broker was thinking of different commission structures he decided to create structures that he himself would be interested in as a high producing Realtor. At the time he was closing on a transaction by himself every week. He came up with three different plans and we have no additional fees! Plan A gives the Realtor the highest potential income it is a 100% commission plan with No CAP! The agent is only responsible for pay $79.00 a month and $79.00 per transaction and they get to keep the rest! For example, if it was a $400,000 house that was paying 3% commission which would be $12,000, most of our Realtors charge a $499.00 transaction fee (You have the freedom to choose what to charge). The Realtors take home would be $12,420 as the Brokerage would only take $79!!! Our Realtors can actually earn more than 100%! If it was an 80%/20% split as an example the Realtor would get only $9,600 minus the transaction fee $325, minus E&O of $30 per transaction, minus a broker review fee of $25 leaving the Realtor with $9,220! That is a $3,200 difference in just one transaction for the same amount of work!
Our Plan B structure is very similar to plan A it is just less monthly, only $35 a month and the transaction fee is just $325. Again, like the example above the Realtor can earn more than 100%! The Realtor could take home $12,174 out of a $12,000 dollar commission if they charged the $499 transaction fee. If they preferred Young Real Estate could just take the transaction fee out of the total commission instead of charging it to the client. It is up to the Realtor it is additional money for them with us. Just like plan A there is no additional fees.
Plan C is a little bit different. It is a plan designed to still give our Realtors a very high commission percentage but has no monthly payment. The amount charged to the brokerage is only .00199 percent of the sales price. Which translates to $199 per $100,000. So, for the example above the agent would receive $11,453 (This includes $249 of the $499 transaction fee, $250 of which goes to Young Real Estate). The Realtor still makes over 95% in this example with no monthly fee! Just think about what you could accomplish with that much extra money. How much quicker you could get started in your career if you are a new Realtor.
Commission structure is very important factor to consider when choosing a real estate brokerage. It isn’t the only factor though; training is critically important as well especially for newer Realtors. That is why our award-winning Broker teaches many of our classes himself personally. We provide in person classes, recorded training, Zoom training, CE classes, and scripts that go over every aspect of the business that a Realtor would need to become successful. We also do not charge anything for those classes. We currently have Realtors all over the state of Florida to include greater Orlando, Ocala, Deltona, Daytona, Lakeland, Tampa Bay, Jacksonville, Naples, Gainesville, and Miami just to name a few. If you are thinking of a career change and what to know what it is like to become a Realtor give us a call. If you live outside of those areas feel free to let us know we can always join your location Realtor Association as well!
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