State of Texas here:
I've been reading about the companies that offer a set low fee for closing but you get a 100% of your commission.
Anyone have any experience with this type of broker-business or feedback good or bad?
Thanks for the help.
Are you talking from the principal broker side or joining a company as an agent with this model??
If you are talking from an agents perspective then expect to be a number where it's about volume and pushing paper for the broker to make coin. Basically the broker is babysitting a bunch of agents.
I did this model as a principal broker many years ago when these were just coming out on the residential side.
The statistics I had showed that out of all the agents only 20% or so were closing something a month. So if you have 50 agents and get 350 per transaction fee on residential that is 3,500 a month gross before brokerage expenses.
The problem is the other 40 agents all tend to be part timers and they are rusty and you end up doing the whole deal for them. Also you get license lapse notices from your state commission on agents, not completing their continuing education requirements, not paying their dues to the state commission, etc.. Also having their license suspended for student loan delinquencies, back child support, IRS tax levy demands to their principal broker on the agents portion of their commission checks etc.
Lot's of drama that a head broker doesn't need. Some brokers love babysitting agents and their problems. I can't stand it and got rid of all of them.
I focus on my own investments these days and working with commercial clients one on one. I have the life I want without the drama.
I'm on the agent side. Getting the whole commission is very tempting. I can't get feed back on any agent that is doing this and happy or unhappy. Of course the websites show agents that use to be with a Well known Brokerage House and now they love their freedom AND ALL the commission...at least that's the commerical on the site. LOL
Thank you for your advise.