RE agent commission

[Kris B.]

How do you handle RE agent commission while flipping? Do you pay while buying and selling again for buyer and seller agents? Is there a standard % for a sfr (if anyone is around DFW market) ?

[Chris Ayars]

"Standard commission" is a misnomer and considered price fixing by many, which is illegal. Each agent has a commission that they typically charge but, by law, it is negotiable. 

Keep in mind that you get what you pay for. So if you want to decrease the agent's asking fee, the agent may reduce the level of service provided. This is because marketing costs money, and that is a big part of the listing agent's job.

Another major part of any real estate agent's job is making sure all contracts and documents are properly executed in a timely fashion. 

If you sign a buyers agreement on the purchasing side or a listing agreement on the selling side, it is a legally binding document and the agent has a fiduciary responsibility to work in your best interests just like you have a legal responsibility to make sure the agent gets paid at the closing table. 

If you are the buyer, payment is YOUR responsibility regardless of whether the seller provides the funds to pay your agent or not.

With all that said, the real estate agent is providing a service for you that MAY net you more cash in the long run. Discuss with your preferred agent how you would like to do business and compensate them accordingly. If you cannot agree on terms, do not sign with them. Find someone else... but don't be a scrooge either. They have to earn a living too.