What You Need To Know About Your Realtor
Adults desire financial security more than any other thing in this world. People, especially real estate agents, sometimes have to wait for months for their rightful commissions. That can be demotivational for the professional and detrimental to his business. Business with money usually results in downtime that costs money and opportunities. Realtors might want an advance for advertising and marketing of their next open house, or they might simply want to upgrade their office space. In such instances, nothing helps more than commission advances.
Bigger advances for the bigger sellers
Did you know? The big sellers often get bigger advances. If you are a real estate agent or a realtor, who closes about 10-12 deals a year, you will be eligible for a bigger cash advance. Smaller agents who close about 3-5 deals only are usually eligible for smaller real estate cash advance amounts averaging $2,000. Although, the company will not check your credit records or your loan histories, they will check your ability to close these deals and maintain your commitments.
Quick solution to long-term money woes
Thankfully, the advance is quite instant, and the approval takes only a day maximum. You do not have to pay interest. You sell your pending commission at a flat fee to the advance commission company. You can apply for a listing advance; then when a seller shows interest in the open house and when you manage to close the deal, you can switch it to a pending sale advance. This will get you a larger amount for a smaller fee since it offers more security.
Pocket-friendly solution for pending commissions
A cash advance should not cost you an exorbitant amount. It should be a fixed percentage of your commission. In case the sale falls through, you can always look for new buyers. In the meantime, the company will charge you a nominal extension fee until you close the sale again.
There are cases when realtors come with 2 or more than 2 listings. Companies can try to limit the number of listings per realtor, but ideally, one realtor should be able to claim advance against multiple listings. There should be no minimum amount or maximum threshold of advance that the company can impose. A good company has transparent fees and candid policies about their lending limits per person. As we have mentioned before, the limits depend upon the professional performance and not on the credit scores or on the number listings up for advance.
No matter how many times you have already taken out advances for your pending commissions or how often you think about doing it, you should always check the details of the advanced commissions company. Read the fine print of their policies and check for hidden costs. The best are the companies that only cater to real estate professionals only. They can understand the individual needs of every realtor and real estate agent, and design their policies as per their convenience.