Brokers Use Loft47 to Automate their Real Estate Commissions
The real estate industry relies heavily on integrations from its technology partners, even if it is just the ability to have a single sign-on (SSO). As a result, very few proptech firms do not have Open API to allow others access to information on their platforms. The challenge is finding a firm leveraging those Open APIs to solve a business problem.
Then along comes Loft47, whose main objective was to solve a problem by providing a modern commission management tool and simplifying the flow of transaction information from contract to close. Loft47's approach is to create a "best of suite" tech stack for brokerages. It is a strategy that leverages Open APIs from other products to build SMART integrations and allows brokerages to focus on their business.
Please see below for the full press release.
Loft47 Leads Real Estate Back Office Accounting Innovation with Smart Integrations
Brokers use Loft47 to automate their real estate commissions using SMART Integrations and Data Driven Dashboards
Vancouver BC, CAN – April 6, 2022 – WAV Group, Inc. released a detailed report for real estate brokers in need of a modern and robust back office solution. WAV Group's report Smart Backoffice Integrations Saves Brokers Time & Money describes how Loft47's integrations with industry standard transaction management platforms and accounting systems are SMART and create a highly flexible technology stack that can accommodate the complexity of any individual brokerage.
Loft47 is a modern commission management and accounting platform integrating with other key back office technologies and growing rapidly across North America. WAV Group went beyond the buzzword "integration" to find out how Loft47's smart architecture is a solution that goes beyond checking the integration box. These high-quality integrations with bountifully-functional APIs drive a seamless brokerage back-office from contract to close.
The increasingly rapid adoption of digital tools for real estate operations has spurred on the introduction of new and modern software in the space. Brokers rely on a number of these modern tools to streamline data flow for the back office which will include any combination of listing management, form generation, e-signature, transaction management, commission management, payments, and accounting. Brokerages can also strategically grow their operations by adding goal setting, metrics and reporting tools to their technology stack.
While many companies are attempting to introduce a one size fits all product, choice still reigns supreme in real estate. Getting agents to adopt a single transaction management platform or requiring an accountant to use a real estate specific accounting ledger can be near impossible. WAV Group found that Loft47 elegantly ties together a brokerage's transaction management, commission management, payments, accounting and reporting into one cohesive solution. Saving time and money at each step.
The efficiency gains of modern platforms are often lost in systems that do not connect to each other. These systems have proven to be plagued by redundancy, which results in rounds of data entry errors.
Wav Group's report specifically addressed the strength of Loft47's transaction management platforms SkySlope, Dotloop, and DocuSign Rooms. Loft47 is the leading commission management engine architected with SMART integrations as part of its core offering. WAV Group validated that Loft47 can accommodate flexibility and choice in technology tools without losing functionality, "If you are a broker who likes to provide agents a choice of which product to use in managing transactions, Loft47 is an excellent fit. A broker may have all three transaction management products configured simultaneously; thus, allowing their agents to use any one of them."
Sasha Hryciuk, Founder and CEO, felt strongly about building Loft47 to connect to other best-in-class tools right from the beginning. "Loft47 is an accounting first, commission management platform, designed to support simple data flow." Hryciuk continues, "We believe that Brokers and Agents should have the ability to choose the tools that suit their business needs while continuing to enjoy the benefits of connected, seamless workflows. Integrations shouldn't be an afterthought."
WAV Group Head of Technology David Gumpper has a vast history in back office technology. He understands the need for seamless dataflow. "My expertise has led me to consult with many small and large brokerages to pull data together similar in the way Loft47 facilitates out of the box. If you're already using some of the most common tools on the market like Dotloop, SkySlope, or DocuSign, then Loft47 is an ideal choice and a game changer for your operations." Learn more about smart integrations by visiting Loft47's website.
About Loft47
Loft47 is the complete back office solution for real estate brokerages and agents. Loft47 integrates with other real estate tools to efficiently manage transactions, commissions, fees and communication with closing parties. More information is available at loft47.com.
About WAV Group
WAV Group is the leading consulting firm in the residential real estate industry, serving many of the largest and most successful small businesses, including real estate brokerages, technology companies, and local, state and national real estate associations. WAV Group helps each of its clients evolve and grow by delivering an unsurpassed depth of experience in technology, strategic planning, research, business development, sales, product development, marketing and communications in the real estate industry. The firm's diverse collection of global industry experience allows it to cross-fertilize ideas and bring best-of-breed solutions to its clients. More information is available at wavgroup.com.
To view the original article, visit the WAV Group blog.
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There's No One Perfect Commission Split: Here's Why
It's no secret that the competition for attracting and retaining top agent talent is fiercer than ever, with many brokerages ready to roll out the red carpet for the best performers. Perhaps the biggest thing agents look at when selecting a brokerage is the commission structure, so picking the right one is key. A variety of factors dictate how (and how much) you pay your agents, and both paid brokerage benefits and net commission income will factor heavily in their decision to join, and remain on, your team and stay. Let's look at five factors that affect what kind of commission split you should be using.
The type of agent you want to attract
Different agents have different financial and professional development goals. This means different commission structures will appeal to different types of agents depending on their experience:
Early-career agents: Newly licensed agents just getting their feet wet probably won't have a steady stream of business, so they might have less regular commission income. They will likely be more interested in training, mentorship, and (free) leads. In general, a full-service brokerage with a fixed split will appeal most to early-career agents, and they may be willing to accept a lower split in exchange for the help they need.
Mid-career agents: Mid-career agents have experience and know what they're doing. They have developed a niche, advanced time management skills, and have a regular flow of leads and closings. This results in regular (and often growing) commission income. They are more interested in leveraging useful tools while lowering unneeded fees. Mid-career agents might be more enticed by a graduated commission split with a cap to keep more of their commissions and be rewarded for their higher sales.
Late-career agents: Late career agents are at the top of their game and are therefore the top producers. They are usually interested in minimizing their fees and keeping the maximum amount of their commissions. Therefore, a fixed or graduated split would need to be tipped heavily in their favor to be worthwhile. Otherwise, they might gravitate toward a 100% commission model so they're only paying for what they need.
Want to learn more about the different kinds of commissions splits brokerages can choose from? Read our blog post detailing the most common commissions plans.
The maturity of your brokerage
Whether your brokerage is mature or newly established will have a major effect on what kind of commission structure you implement. Brand-new brokerages need cash. A fixed or graduated commission model means no income unless agents are closing deals, while a 100% model, revenue is guaranteed because agents will pay the fees they owe whether they are making sales or not.
The size of your team
The number of agents on your team will also impact your optimum commission structure. This number can be related to market maturity, but this isn't always the case: while the largest brokerage in the US has over 50,000 agents, plenty of mature boutique brokerages operate with a team of just 10 to 20 agents. Keep in mind that the smaller your team, the more difficult it will be to have predictable, regular income from month to month using a fixed or graduated model, so a 100% model may work better but might also deter newer or less experienced agents, making it more difficult to grow.
Local market conditions
If the average price for a home in your market is $100,000 versus a market where the average price is over $1,000,000, your predominant agent type, team size, and cash flow needs will vary widely. An agent would need to make 10 sales at $100,000 to earn the same commission income as one sale at $1,000,000. This means that a full-service model—with a fixed split covering marketing, professional development, admin, and other benefits—would appeal more to an agent in a market where they need to make smaller sales more frequently.
Your biggest issue: trying to please everybody
Most of the trouble brokers experience while deciding how to pay their agents is trying to come up with one model that works across their brokerage. We have news for you:
It's not possible.
As your brokerage matures and grows, so will your team and its needs. The best way to please your agents, maintain profitability, and continue building your business is to be flexible. One way to do that is to offer the right kinds of plans that account for the above factors and your brokerage's own goals.
Whether you have 5 agents or 5,000, your brokerage needs secure, scalable, intuitive, and easy-to-use cloud-based solutions to grow. Click below to download our NEW Constellation1 Commissions feature sheet and schedule a demo with our Commissions experts.
To view the original article, visit the Constellation1 blog.
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Redfin Publishes Commissions on Over 700,000 Homes for Sale
Redfin is now publishing the buyer's agent commission for over 700,000 home listings in regions where this data is available. Redfin's mission to redefine real estate in the consumer's favor means giving consumers access to the most transparent data and saving customers' money on fees.
Publishing this data is possible because of an upcoming settlement agreement between the U.S. Department of Justice and the National Association of Realtors. Redfin was the first nationwide brokerage to publish the commission offered for its own agents' listings on its website. But prior to the DOJ/NAR agreement, the company was restricted from publishing the commission on other brokerages' listings.
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Comp Talks: Real Estate Agents (Part 1 of 2)
Real estate agents have faced many challenges in the recent past, including the advent of Zillow and online portals, and now the pressure to reduce fees and/or adopt a fee-based compensation model.
The investment advisory industry offers great insights into this transition, as it is one that has been adopting a move to fee-based compensation over the past 20 years. Should the real estate industry follow suit?
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