5 Frequently Asked Questions About Real Estate Commission Advances

  • Bruno Rice
  • February 1, 2018

Real estate deals can be long, arduous, and complicated affairs. Everything from meeting with attorneys to signing contracts to disputes between the two parties, real estate agents can expect the closing date to be pushed back just a bit, which can be difficult on the pocketbook.

Although the Canadian housing market is lucrative, and you can expect a big payday, realtors can twiddle their thumbs for a few months until the cheque comes in the mail. In the meantime, you have to cover expenses, pay your staff, and continue working with other clients.

One of the best options to alleviate the hassle is to use a real estate commission advance. This is when you sell a percentage of the pending commission at a discount to a company in exchange for immediate cash. No, it is not a loan, but an arrangement without having to wait for the closing date – who knows when that will be?

Now that your interest has been piqued, it is time to find a company that specializes in this service. Let’s get down to it!

Here are five tips for choosing the right real estate commission advance service:

1. Are There Hidden Fees in Contract?

Many financial businesses can make additional money by trapping customers into a contract that has plenty of hidden fees and charges. Yes, it is an unscrupulous of handling business, but it is legal because you signed on the dotted line.

Want to avoid these additional fees? It’s simple: read through the contract, comb through the details, and pay attention to the fine print.

But then again, perhaps you should just find a company that proffers simplicity.

2. Is the Application Simple to Complete?

If you’re perusing a contract that is several pages long, reads like it was written in Greek, and requires multiple questions to put forward after just the first paragraph, then you know it is time to go elsewhere.

By completing an application that provides so much of a hassle, you’re just asking for trouble.

3. Can the Application be Approved Same-Day?

You know you have found the right company if they have an application process that can be approved on the same day you submitted it.

Simply put: if you hand in an application at 10 a.m., then you should be able to get an answer a few hours later. This allows you to move ahead with your business – time is money!

4. Do You Want to go Through a Credit Check?

Some companies will proceed with a thorough credit check, while other firms are indifferent to the applicant’s credit score. What do you prefer?

Whether you have a pristine credit score or you have a low credit rating, a good real estate commission advance store will only concentrate on the transaction. Since it isn’t a loan, it doesn’t matter if you can borrow $5 million from a bank because your credit is so good.

A credit check is just an unnecessary headache in this type of transaction.

5. What do Industry Peers Say About Firms?

Let’s face it: there are likely others in the real estate industry that suffer from the same problem: extensive waiting for a commission. Therefore, they likely are aware of real estate commission advance businesses. If so, perhaps it would be a great idea to speak to your peers about it, ask for some advice, and find out if they have any sublime and respectable sources.

This will save you the aggravation of phoning around, reading testimonials, and heading from place to place.

It seems like everyone is finding a home in Toronto and beyond. You just need to show a potential client and they’ll immediately take it. That said, since any real estate transaction is grueling and lengthy, you may not get your commission in a short period of time, which can be hard on your wallet.

The simple solution is to take advantage of a real estate commission advance firm. You get most of your commission money right away, and you don’t need to worry when the real closing date is. You don’t need to be so concerned about money, and you can refocus on your office.

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