Choosing Our First RE Agent

[Chris V.]

We just had our first meeting with a potential agent. Their company seems great. Just a question for all: How common is it for an agent or firm to require a $3000 minimum commission on every deal? This means if we were purchasing a $20,000 property, the commission 3% buyers agent commission of $600 would not meet the requirement so we would have to come up with the other $2400. Implication is that any deal under $100K would require additional cash for us. What are your thoughts?

[Zach Sikes]

We charge a minimum - otherwise we wouldn't be able to cover the overhead. It's the only way to get good agents to work the price range, otherwise they'd just sell a few $250's vs. 10 $50k's.