In the fast-paced world of real estate, agents often face cash flow challenges while waiting for deals to close. Commission advances can be a lifeline, but they come with risks—especially when transactions involve small deposits or uncertain outcomes. At iCommission, we believe in empowering agents with financial flexibility while ensuring responsible underwriting.
This case study explores how iCommission helped an agent navigate a $525,000 transaction with a $10,000 deposit (less than the typical 5% deposit) and highlights our unique approach to balancing flexibility, trust, and risk management.
The Challenge: Small Deposits and Transaction Risks
In this case, the agent secured a $525,000 purchase for their client with a 10,000 deposit—significantly lower than the standard 5% deposit typically seen in real estate transactions. While this was a win for the buyer, it posed a risk for the seller: if the buyer walked away due to unforeseen circumstances, the seller would lose valuable time and resources. For the agent, this meant navigating a delicate balance.
Cash Flow Needs: The agent needed funds to cover business expenses while waiting for the deal to close.
Transaction Risks: The small deposit increased the likelihood of the deal falling through, making a commission advance riskier for the agent as ultimately it’ll be agent’s liability for repayment.
iCommission’s Approach: Responsible Underwriting and Flexibility
Rather than hastily approving or overly cautious rejecting the advance, iCommission adopted a balanced and thoughtful approach
Friendly Reminders About Risks: We communicated openly with the agent about the potential risks of the transaction, including the possibility of the deal falling through. This transparency ensured the agent was fully informed while still feeling supported.
Thorough Due Diligence: Our professional underwriting team conducted comprehensive Comparative Market Analysis (CMA) to ensure the sold price aligned with market values. We confirmed that the agent had secured a strong deal for the buyer, which reduced the risk of last-minute walkaways.
Flexible Solutions: Based on our analysis, we accommodated the advance with flexibility, providing the agent with the funds they needed while mitigating risks. This approach built trust and reinforced our commitment to supporting agents in challenging situations.
The Outcome: A Win-Win for All Parties
For the Agent: The advance provided much-needed cash flow, allowing the agent to focus on closing the deal without financial stress.
For iCommission: This case showcased our deep insights of the real estate industry and ability to balance flexibility with responsibility, setting us apart as a trusted financial partner for agents.
Why Choose iCommission?
At iCommission, we don’t just provide commission advances—we offer solutions that empower agents to succeed. Whether it’s a high-risk transaction or a straightforward deal, our team is here to provide the flexibility, expertise, and trust you need to thrive in the real estate industry.
Ready to experience the iCommission difference? Contact us today to learn more about our commission advance services and how we can support your business.
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