As we have all seen over the last few years, real estate prices have gone up tremendously. The good news for real estate agents is that this often equates to larger commissions being earned. However higher values have also priced some potential buyers out of the market. In addition, the trend towards higher mortgage rates has also reduced the number of potential buyers who can afford to buy. On the supply side, many homeowners were able to lock in very low mortgage rates a few years back and will only sell and move if absolutely necessary.
This combination of factors has resulted in a real estate market that most agents have never experienced: Fewer transactions with larger commissions creating a dramatic peak and valley cash flow situation. The total commissions earned for the year may be the same as in the past or even better! But what is the best way to handle the larger time gap from one closing to the next?
More and more agents are discovering that a commission advance from RealCommissions can help bridge the gap to their next closing and reduce the stress of commission-based income. With RealCommissions, agents can receive the funds they need as soon as they have a pending contract and not have to wait for the property to close. Many agents only advance part of their pending commission to smooth out their income and keep the cost of the advance low. As the saying goes, only pay for what you need!
All RealCommissions advances include a 15-day grace period beyond the scheduled close date, so agents are not penalized for last-minute delays. RealCommissions’ online application via DocuSign is easy, fast, and secure. The advance is wired into the agent’s account immediately upon approval, so the agent has instant access to the funds. To keep your business growing and avoid the high cost of loans or credit cards, please contact us about our RealCommissions commission advance service.