Buyers Agent Commissions (Investors)

[Coral Watts]

Is it typical that the buyer pays the buyer's agent commission? I can see where it may make the offer more competitive. 

If so, what are you seeing for commission? I always thought 3% was standard but I'm seeing $3500 on a $40,000 purchase. Is that normal? 

[Russell Brazil]

Most agents will have a minimum dollar commission that they accept. $40,000 at 3% would equate to $1200. After fixed costs, most agents would actually lose money servicing properties at that dollar amount. Thus why you are running into a higher commission.