This is a very difficult and delicate subject matter to discuss, as a broker it has becomes a discussion that I have had with several other local brokers and I thought I would open the subject up for comment. One of the challenges that a broker faces is knowing that an agent is doing everything possible to make a sale or hold a sale together and due to circumstances that can be out of the agents control the deal does not go through or the buyer that you are working with decides not to purchase. 

This is an extremely sensitive matter, but it has become a recent issue. Who doesn't want to believe that the situation is just temporary, and that a deal is just around the corner. So, my question is:

 Should a broker offer advances on future commissions? 

 

 

Being a real estate broker takes on the form of leadership. The agent/broker role is to lead the client through the home purchase or sales process and serving them with the highest customer service standards. Crescent Moon Realty, Inc & Land N Sea Auction goal is to help the client achieve as many of their goals as possible - so that both parties feel that they are in a win-win.

Find out the benefits to selling or buying a home traditionally or non traditionally ---Contact us @ 1-760-650-2157 Or visit our websites @ www.LandNSeaAuctions.com or CrescentMoonRealty.biz.

Lorraine or Loretta

 
Post is included in group: Realtors®
Post is included in group: Real Estate Auctioneers

4 Comments on Should Brokers Offer Advances On Commissions?

JUL
19
2008

Even though I would love to receive an advance, I think that is a very bad idea.  None of can see the future.  At what point would you need to require that the advance be repaid?  If the agent has multiple deals getting ready to close it might work to offer an advance.  I guess each situation requires its own decision. But once you open the door, you may not be able to close it.  Veronica
10:57am • #1

As a rule I would not want an advance.  There was one case where I really needed a portion of my commision NOW, but the deal was already closed and funded.  It was a Friday and the check could not be issued until Monday (It was an REO Deal).  I explained the situation to my broker and he was generous enough to go ahead and issue me my check. 

Other than a guarenteed closing (meaning the deal funded and the check was printed and just need a signature) I would have never asked.  I as an agent have had to many deals fall apart on the day of closing.  But sometimes stuff happens.  Its nice to know that If I can make a compelling argument I could ask for an adavnce as a favor, not as a general practice though. 
11:13am • #2
650,291 Points Localism Sponsor Outside Blog

Advances are a bad idea in our opinion. One never knows for sure the deal is done until its done.
12:08pm • #3
JUL
20
2008

Abolutely Not.  I am not in the money loan business.  There are a number of commission advance companies out there on the web.  How am I going to get the money back if the deal blows up?  I suppose I will take the title to their boat or car as collateral, but I guarantee that I will sell that sucker the day after the advance isn't paid on time.

We will pay the agent when a deal closes before the commission check from the title company clears, but that is about it.
10:15am • #4


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Lorraine or Loretta Kratz-Certified Negotiation Consultants (Crescent Moon Realty, Inc. & Land N Sea Auctions.) Rainmaker_large

Lorraine or Loretta Kratz-Certified Negotiation Consultants

San Marcos, CA

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Crescent Moon Realty, Inc. & Land N Sea Auctions.

Office Phone: (760) 650-2157

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