Working From Anywhere

A new wave of real estate

Why Choose a Virtual Broker?

Technology is changing the way we decorate, grocery shop, drive a car, run our businesses, and yes even how we purchase a home. The real estate industry is changing, that fact is undeniable. As Millennials and Generation X position themselves to become the next wave of home buyers, the industry is seeing that more buyers are beginning their search online. 50% of home buyers in 2018 found the home they purchased on the internet. So, as an industry we must shift our thinking to show our strengths and expertise as a source of value to the public who have hundreds of homes at their fingertips. According to the National Association of Realtors 2018 home buyer statistics the industry as a whole still holds a position of authority indicated by the fact that 87% of buyers purchased their home through a real estate agent or broker.

Enter the virtual brokerage. There is a common misconception that virtual brokerages are cheap and diminish the integrity of the industry’s traditional brick-and-mortar brokerages. However, virtual brokerages have been around for decades and provide value and benefits to both agents and consumers. Virtual brokerages, such as REeBroker Group, have been showing real estate agents for years that even without a formal office setting you can optimize local marketing and advertising, maintain sphere of influence and networks, received superior broker support, and be your own boss. Without the necessity of mandatory office hours and floor time, real estate agents have more flexibility to become a neighborhood staple by having the freedom to do more of the activities that they view valuable for their individual careers such as farming, cold-calling, sponsoring events, community involvement, political involvement, etc.

Virtual brokerages may have only one physical location, ormany, depending on the company’s structure. Having limited office space means lower overhead expenses and those savings are typically passed along to the real estate agent as a smaller commission split or a flat broker fee structure. Lower broker fees give the individual agents and brokers more commission flexibility for consumer concessions. Typically, a virtual brokerage has a 100% commission split model while traditional brokerages have a broker/agent commission split model. It is in these methods of compensation we see virtual brokerages having the flexibility to offer agent’s more of their earned gross commission per real estate transaction.

Let’s see the actual numbers for two of these broker commission methods.

Traditional Broker/Agent Commission Split

Gross commission amount earned in a transaction: $18,000

Broker/Agent split 50% (this is generous): $9,000 to broker and agent

100% Commission Split Model (Flat Broker Fee)

Gross commission amount earned in a transaction: $18,000

Set broker fee per transaction (ex: REeBroker Group $635): $17,365 to agent*

* If you are a real estate agent in the process of a potential brokerage change the broker’s commission split model is important but should also be balanced with the services and leads provided by the brokerage. You will also want to make sure that if you are going with a 100% commission split model that you do your research into the brokerage’s fixed monthly costs (office space, desk fees, etc).

The 100% Commission Split model puts $8,365 MORE in the agent’s pocket than the traditional split. Think of the financial freedom and peace of mind receiving more of your earned gross commission could make for an agent and their family!

In addition to the trickle-down financial savings other benefits of online brokerages are growing exponentially. There is a reason why virtual brokerages are on the rise; the programs and capabilities are scalable on state and national levels. REeBroker Group, a California based online brokerage that’s been in business since 2005, offers many programs that are available to all agents including 24/7 online transaction platform and storage system, online training courses, 24/7 broker support, one-on-one video calling, mentoring, and so much more.

Just because you pay less in broker fees does not mean you are given less in terms of broker support!

For more information on virtual brokerages check out: https://www.info.reebroker.com