“Your check will arrive in 3-5 business days” are never the words a real estate agent wants to hear.
Such was the case with Jude, the local real estate agent who was expecting to get paid his commission for the home sale on Madison Avenue.
With traditional real estate brokerages, once a home sale finalizes, the title company reviews the closing documents and distributes funds (via check) to the home seller, the buyer’s agent broker, and the seller’s agent broker. Once the brokerages receive the funds, they have to manually calculate the exact commission split and physically cut a check to be paid out to the agent.
In this case, Jude got a call from his broker, Tiffany, after she spent time manually calculating his portion and writing out the check, letting him know that his commission check would be dropped in the mail and arrive in 3-5 business days.
Because Jude needed that money ASAP, he only had one choice: he hopped in his car, drove 45 minutes across town, grabbed the check, and drove to his bank to make the deposit.
Jude and Tiffany’s story happens everyday across the country. Last year, more than 2 million real estate agents were a part of more than 5 million home sale transactions. Think of all those commission checks that had to be calculated, cut, picked up, driven to a bank and deposited.
Fortunately, now through modern technology, Jude and Tiffany’s lives are about to get a little easier.
Introducing SameDay ACH: a faster way to pay your agents
We’re excited to officially announce our SameDay (and NextDay) ACH payments. We partnered with Loft47 to streamline agent commission payouts so that the Tiffanys of the world can automatically calculate agent commissions, and agents like Jude can get their payments swiftly deposited into their bank accounts the very day the broker receives the funds.
Brokerages that roll out this technology will be giving valuable hours back to their agents. Not only can brokers pay agents quickly, but they can request funds for monthly billing, or outstanding deposits from third party vendors like Title companies or other brokerages. The accounts receivable workflow deposits the funds right into the Brokerage’s bank account.
We’re proud to have partnered with Loft47 to bring about these new features. We believe our partnership is a great example of how complementary companies can identify a problem within an industry and — through technical collaboration and domain expertise — provide a truly meaningful way to strengthen the agent/broker relationship.