One of the fastest growing Real Estate sectors in the USA is 100% Commission Brokerages, whereby Agents can access all of the services provided by main street Agencies by paying a small monthly fee and in return, receive all of the commission for a transaction. The monthly fee covers all of the costs usually attributable to running their own business, at a fraction of what it would cost to actually start their own business.
On top of the monthly fee, these brokerages generally charge a fixed transaction fee for each completed sale. One obvious benefit of this model is, if the Agent has a quiet month, then their costs are limited to just the monthly fee. Conversely, if they have a good month, then they will earn substantially more than what they would earn from a traditional Brokerage.
Australian Home Partners is now on the scene in Australia offering experienced Salespeople and Agents a similar opportunity to be in business, by themselves, but not on their own. Experienced Agents are being recruited throughout Australia to join the company as contractors, and salespeople as employees who are then encouraged and assisted to attain a full Agent licence.
For Property Sellers, an Agent working with a 100% Agency is highly incentivised to gain a top result. They also have the advantage that, because these Agents are rewarded so highly, they are well positioned to accept conjunctional sales from other Agents who have a potential Buyer. Traditional Agents sometimes refuse approaches from other Agents with a Buyer asking to share the commission split.
Agents and Salespeople are given access to all of the major websites, CRM program, trust accounting, data research, forms, branding plus administration support and training that they would expect to receive from a franchise or independent, without having to forego a large portion of the commission charged on a sale.
The Directors, Robert and Deborah Lubke have been in real estate for many years, having operated their own franchised and independent offices in the traditional manner. As Deborah points out, "Until we researched and implemented this model, there was no way that we could offer Agents such an opportunity to be rewarded so highly for their work. After all, it is the Agent who finds the Client, nurtures them for weeks, sometimes even years, before they are able to make a sale and then be paid. Accordingly, we feel that the Agent should be entitled to all of the reward, with just a transaction fee for us to process the sale to completion. Our Agents are then paid directly from the trust proceeds.
“We are anxious to take this business model to the next level in Australia, and are actively in the process of seeking investment capital to grow it rapidly."
A big advantage for Agents working in this system, is the ability to grow their own rent roll which could then become a major asset for them to sell, or for retirement income. Software systems and trust account are provided to assist if required. Agents are also encouraged to employ associates and so build their own sales team as well.
If an Agent were to decide to leave, then they are welcome to take their listings and Client database with them. "We base our business on having excellent relations with our Agents. If they are not happy at any time, then they are welcome to move on without the usual difficulties in parting company with a traditional office" says Robert.
Australian Home Partners
Australian Home Partners is based in Queensland, and is recruiting experienced Real Estate Agents around Australia to become part of this growing Australia First company.