For real estate agents, payment isn’t as seamless as some people think. Once you earn your commission, you still have to split it between other agents and the broker. Then, you’ve got to wait for that reduced amount to even hit your bank account.
That waiting could take weeks, which we can’t always afford when there are bills to pay.
So how do you speed up the process and get your hard-earned money faster? Read on to learn how to expedite payment for your services.
Perform Preliminary Title Reports
You don’t get paid until the deal officially closes and the title transfers from one owner to the next. Although it’s your job to help make sure this happens, there are some things that only the seller can do.
If they’re dragging their feet or unsure of the process, the closing could be delayed — along with your payment.
One thing you can do to help them out? Perform a preliminary title report. This will give you a heads up if there are any potential issues that might affect the title and drag out the closing process. This is especially important if there was a divorce in the past or any other issue that might affect ownership of the house.
Help the Seller Navigate Closing Costs
Once you have a buyer for the home, the seller still has closing costs to consider. Your commission is rolled up in a slew of other things. HOA transfer fees, municipal permits, title searches, home inspections…there are a lot of fun things that sellers have to pay for.
Helping the seller navigate through these as seamlessly as possible will help the deal go through quickly. It’s usually good practice to raise the listed price of the home just a bit to help them cover these costs.
If you’ve made sure they’re aware of all of the different costs and paperwork associated with closing the deal, there’s less of a risk of their confusion delaying your payday.
Of course, while the two tips above can help you out, they also rely on other people doing their jobs in order for you to get paid. If you really need to expedite the process, you can apply for a commission advance.
Sometimes life doesn’t go the way you want it to. Commission advance companies understand the bind that some agents find themselves in, so they’ll work with you to get your commission even before the closing is official.
You will need a purchase contract in order to prove that closing is on the horizon, but this is a safe way to really speed up the process.
Expedite Payment for Your Hard Work
Real estate agents put in a ton of unseen labor. By using the three tips above, you can expedite payment for all those hours you put in behind the scenes.
Don’t stop at just learning how to speed up your payday, though. Keep up your professional growth by checking out the rest of our real estate blog posts!