RE Agent - Minimum Commission?

[Chris V.]

Hey all, just curious after our very first meeting with a real estate firm in town.

One of their requirements is that every deal will yield a $3,000 commission for the buyer agent. So if we were buying a $20,000 property @ 3%, this would only yield $600 commission, which would leave an additional $2,400 for us to pay the agent out of pocket.

I definitely understand the logic, that it might not be worth the agent's time. But of all the learning material I've seen so far from BP, this is the first time I've heard of a minimum commission for buyer agents.

Can I get some experienced investors to respond on their experience here? Should I keep looking for a different agent who will accept the standard % commission, regardless of the sales price, or is a minimum commission amount pretty standard, and you guys pay it?

Thanks!

[Russell Brazil]

Minimum commissions are very typical when you are dealing with low priced properties. Asking someone to work for 3% of a $20k property is less than minimum wage. I typically won't service properties if I don't make at least $5k.