Realtor Commission Advance – The Best Option for Real Estate Agents to Deal with Temporary Cash Crisis!

The real estate industry is filled with unpredictability. Market conditions change rapidly, causing massive shifts in real estate pricing. Realtors may also see fluctuations in sales due to economic, political and social factors. Real estate agents cannot control or influence these elements or their effects on the industry. Moreover, even if a deal does go through, there is hardly any guarantee on when the broker or agent would receive his commission for the same. It usually takes months for realtors to receive their due commission. Such delay in payment puts a significant strain on the real estate business finances.
It is at such a crucial time that realtors can benefit by applying for a commission advance. They can use this advance for advertising the sellers' houses, buying gas for showing buyers around, paying licensing and association fees and much more By getting an advance on his commission, the agent can potentially normalize his cash flow.
Why is commission advance the best option for short-term financial relief?
  • Availability of cash at the time of need: Realtor commission advance is excellent for covering short-term expenses. However, realtor commission does not come with an upper limit. An agent can apply for and also receive as much as 90% of the commission that they received after the sale of residential properties and up to 80% on the sale of other properties.
  • Low fees: Short-term business loans typically come with a high rate of interest, but real estate commission advance is available at minimal fees. Advance commission companies usually charge a specific percentage of the total commission amount. Finding other short-term loans at such affordable rates is difficult.
  • Simple application process: The process of applying for advance realtor commission is quite simple. Most providers have their own websites and online application forms that do not take more than few minutes to fill up if you have all the required information readily available. This information includes details about your business and income. You can also download and print the form, fill it and send it via fax or email. Valid identity proof along with sale and purchase agreement would also be required.
  • Zero extra charges: A reputed cash advance company will never charge hidden or additional fees for the services. No administrative costs, application fees or exit charges are not required. There are rarely any hidden charges included in realtor commission loans.
  • Fast approval: The entire process of getting approval is not complicated and can be completed within a considerably short span of time. The more accurately you fill up the application form with precise information, the faster will be the approval process. Many companies also offer same day approval as a part of their services.
When is the best time to take out a realtor commission advance?
A real estate agent can take out an advance commission anytime they want early access to funds for personal or business reasons. If an agent closes about ten to twelve deals in a year, he would inevitably hit a slow period at one point where he is unable to close a deal for three to five months. This staggered timing of sales can force him to make do with limited resources for a few months at a stretch. However, during these months, bills will still need to be paid, and ongoing expenses will always be there, and an advance on commission can be a welcome solution. Agents also need to invest a lot in the office setup and marketing activities when they are just starting out in the industry. An unexpected one-time expense that exhausts their savings can put a serious dent in their business plans. Such a crisis can be adequately dealt with using advance commission.
Why not take out a bank loan instead?
Though bank loans are the go-to solution for most business owners when facing fund shortage, they may not be the best option for realtors. Banks usually need applicants to present non-liquid assets, such as bonds, stocks, and real estate as collaterals. While established businesses might not find that problematic, it might be difficult for new real estate agents with limited resources. That is why cash advance makes the most sense for realtors.
Like most businesses, real estate companies have to deal with both advantages and risks. On the upside, an agent is his own boss and is not answerable to anyone. On the other hand, the extended period between making a sale and receiving the money can severely compromise the cash flow and lead to irregular business activities and even bankruptcy. Thus, when sales are slow, and commissions are delayed, it is wise to rely on advance commission. It can provide the business with a lifeline and help to meet financial obligations. It is advisable that you consult a financial advisor before signing any papers to make sure that you get the best deal possible.
 

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