Fair Fees For Birddog RE Agents?
Last week one of the RE Agents I've contacted showed me a property for sale by an investment company. (It needs sustantial rehabbing.) If I were to have her write the contract and buy the house, she gets paid by the selling agent, correct? Is her cut 3% of the price I pay?
The reason I ask is that she mentioned that she would want me to sign a contract that if I bought the property, she would get to be the selling agent when I put the house up for sale. Is that normal? I was planning to sell the house myself and just pay a flat fee for MLS listing.
I think it is perfectly fair for her to get a fee for finding the house, but I don't see any reason for an exclusive contact that allows her to sell it too. [ Edited by emerson11 on Date 02/18/2004 ]
I would do it and be thankful that you have someone who is feeding you good deals (if it sin't a good deal, why do it?). It seems like a very fair exchange to me - a win-win situation. It never hurts to develop a good relationship with a good realtor.
The total commission paid by the seller is negotiible. The selling agent then decides how much she want to share with the buying agent. It usuallly is half the total commission.
I would tell the agent if she wants to write up the sale then fine orhterwise you'll find someone else. But, under no circumstance will you sign another agreement giving her the right to sell tthis propertyty once you own it and once you decide to put it up for sale. That ploy is creative on her part but costly on your side. It''s not necessary.
I have mixed feelings on this one. On one hand you have an agent trying to get much more comission than what she is normally entitled to. On the other hand you have an agent bringing you deals and if you can make money, why not share it? Add her to your team and make her rich. The byproduct of working to make your team rich is that you will be filthy rich..lol. She is just trying to take care of herself.
She is also trying to make herself look good too. Absolutley use her for that. I agree, she is entitled to that. Good luck..
As a licensed RE agent, I can tell you that she is due nothing except the commission she earned when she sold you the house. She can not make the resale listing a part of the agreement to purchase this house.
As an investor, I would agree to it so that the next time she finds a good deal, she would bring it to me. If you don't relist it with her, she will find someone else who will the next time. Just make the offer you submit cover the extra commission or part of it.