You shouldn’t have to wait until closing to get paid on a pending contract. With a commission advance, you can receive your commission immediately on a real estate sale that is under contract, set to close at some time in the future. Once you decide that a commission advance is right for you, there are a few things you should look for – and a few to avoid – while researching the right company:
No Need for a Credit Check
Find a commission advance company that doesn’t check your credit. Approval of you advance should be based on the quality of the contract and your sales history – not your personal credit score!
Look for Transparency with Fees
Some companies have sliding fee charts that don’t explain their rates in detail. You should always ask for a breakdown of fees, so you’ll know exactly how they’re calculated and what you are paying for. Take the time to make a phone call!
Customer Service is Important
A commission advance is a financial transaction, and you should find a company with a dedicated account representative to walk you through the process. Look for the company that will work with you to answer any questions you may have before applying for the advance. What you don’t want is a company that directs you to fill out an online form without being able to get your questions answered beforehand.
Fast Approval Process
The process of applying for a commission advance should be very quick, resulting in funds wired straight into your bank account. A well-established commission advance company should review your application within 24 hours and wire the funds to you immediately upon approval. Ask whether your advance will be wired (immediately deposited) or sent via ACH, which can take up to several days to be deposited into your account.
No Limits on the Size of Your Commission Advance
Leading real estate commission advance companies do not impose a maximum size commission that can be advanced. Whether you prefer to receive a portion of your commission or the full amount, the company should be able to work with you, based on the typical contract price of houses you sell and the volume of business that you do. Additionally, look for a company that will allow you to apply for more than one advance at a time, if your volume allows.
Ask for a Quote or Estimate
A reputable commission advance company will give you a free quote on your commission advance without obligation, and before applying, so you don’t waste your time.
Look for Years in Business
Every year there are new commission advance companies that open – and close – their doors. Make sure you ask how long a company has been in business, and if they have worked with real estate companies nationwide. The advance process is very complex, and there are many scenarios that may trip up an inexperienced company.
This can result in additional worry for you rather than helping you. Look for a capable, experienced company that knows the ropes and will make the process smooth and stress-free for you from start to finish.
Ask for References and Testimonials
A reputable commission advance company should have clients to talk with or testimonials to send to you that highlight their quality of service and validate their trustworthiness. Look at Google reviews and Better Business Bureau Ratings.