Myth #3 about 100% brokerages: They lack in agent oversight and compliance

Myth #3 about 100% brokerages: They lack in agent oversight and compliance

This is yet another common myth bandied about the real estate industry in regards to 100% brokerages.

To be clear, when we call this a myth, we don’t mean that it is false in its entirety. The myth, more accurately, is the idea that 100% brokerages simply must lack in oversight and industry compliance.

This myth can be traced back to the fundamental misconception about the 100% model: that it’s simply impossible for a brokerage to provide a competitive value - to both agents and customer - and still make a good profit. This is false.

As we illustrated in two recent articles, a well-run 100% brokerage can provide superior value to both their customers and their agents.

Of course, we can only speak for our own brokerage. Whether other brokerages meet or fail to meet industry standards for agent oversight and compliance is not for us to say. What we can say is that would not be in our best interest to let cowboy agents run amok over the Puget Sound like it’s the Wild West, ignoring decorum and industry standards, while representing the BPE brand.

Anyone can predict what that would do to our reputation, and, subsequently, to our sales.

Clearing up the confusion around the 100% model

Here’s how it works at BPE:

  • Within a calendar year, the agent owes the brokerage $8,500 in commission. This is payable through 5% of the commission on each deal a broker closes.
  • In the meantime, the agent takes 95% of the commission on all transactions (which is still far more than they get from traditional brokerages) until the $8,500 obligation is covered.
  • At this point, the agent moves to truly 100% commission. The only money the brokerage now receives is in a transaction fee ($25) and processing fee ($185) from each closing, totaling $210.
  • So, as you can see, cash flow is not an issue for brokerages like BPE. We still have money to cover operating expenses (such as the cost of making sure our agents are compliant with rules and regulations).

Supporting our agents is an investment

Providing training, certifications and other resources is one of the areas we care most about at BPE. It’s simple: if our agents flounder, we flounder. Their success is our success.

Ultimately, providing training and support to our agents is a great up-front investment. We invest in our agents, and that investment pays back again and again as the agent goes on to succeed.

We’re playing a different game than the traditional firms. We look at cash flow and expenses in different ways. We run a little leaner, and focus on attracting a higher quality of broker (by giving them what they want – fatter commissions and more freedom to play to their own strengths).

So what does leaner mean, exactly?

Well, it turns out that things like giant office buildings, mandated daily schedules, and micromanaging are expensive. They’re also a lot less fun than doing the things we get to spend our time on– supporting our agents as they need it, and pursuing real estate sales ourselves.


If you’re a real estate agent in the Seattle/Bellevue area looking to take home the lion’s share of your commissions, you can contact Better Properties Eastside. See the deal we offer agents right here on our Join Us page.

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