Beware of Listing Advance Services

We have 2 real estate agent clients right now that are in trouble with listing advance services. Basically how it works is you get a property under contract and the company will go ahead and front you the commission before it closes. Then, when it closes, you pay them back with your commission plus a fee. The problem is, not all real estate deals close. So these agents have gotten fronted for commissions that they will never receive. You can see how that could snowball quickly. Real estate is an uncertain business and as we say, don’t count your commissions before they close. I highly recommend staying away from these services to keep from getting yourself in the same situation.