Agent Fee For Finding Rehabber?
Last week one of the RE Agents I've contacted showed me a property for sale by an investment company that 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. What do you think?
Boo on her! Tell her you plan to sell it yourself. If she balks tell her you will submit your offer through another agent or her BOSS. Then she'll get none of it.
Agreed! You are under NO obligation to sell the property through her after you have rehabbed.
I have seen where the commission is waived on the purchase in lieu of obtaining the listing for the more expensive and easier to sell rehabbed property. You would expect a reduction in the purchase equal to the amount of the commision being charged - typically 5-6%. If not, what would be your motivation to commiting the listing to that broker?
Quote:
On 2004-02-18 11:49, emerson11 wrote:
Last week one of the RE Agents I've contacted showed me ..........
What do you think?
I have mixed feelings on agents, I feel most are over paid for what they do..... however with that said, YOU did contact Her. And SHE did find you a property that you can make money from.......that in itself tells me she is willing to work with investors such as yourself.
I are not under any obligation to her after the initial sale, but I would communicate to her that you could both mutually benefit one another. She is basically bird dogging for you with greater resources and information that can be beneficial to you. From her reaction you can make a decision on what future sales / buys that you can have with her.
In this business it is silly to burn bridges......
NC_Yank
NCYank, or anyone else who has input re: this subject.....I have contacted an agent who has agreed not ONLY to find rehab properties for me but also give advice as to what rehab is needed, refer me to contractors if needed, and find a buyer. This is what he has done with others for years - his area of concentration with properties under $120K. I have talked with others who have worked with him in this manner. At the time, I did not feel this was unreasonable considering the help he is providing until I am more familiar with this. A realtor will get the commission, one way or the other, so I am willing for him to have the commission if this proves helpful to me, so as to build a relationship. If I have confirmation from others with whom he has worked, is this unrealistic? thanks.