Compensating your realtor

[Nathan Realph]

Hi,

As an investor I am obviously looking for properties below market value. I’d love to have an experienced realtor on my team who hustles and can bring me leads but I also would want to make sure that person is compensated for that; I don’t want to waste their time and want to make sure I am bringing value to them.

If I am purchasing properties below market value does any have suggestions to properly compensate a good realtor closing on properties that are bought so cheap.

I’d assume that a good realtor wouldn’t want to work so hard for so little.

Thanks!

[Jonathan Greene]

I disagree with many of the responses above. As realtors, we know how the business works and how commissions work. If we choose to work with investors, we know that we are banking on volume over time and not price point in the beginning. Commissions are paid by the seller and you should never, ever think you need to pay a buyer's agent outside of the legal commission structure.

Some agents have buyer premiums through their brokerage, but that is a classless money grab for most. When that premium is of value is when that agent can give you access to properties early or is an absolute rockstar negotiator on your deals. Any buyer's agent who encourages you to give them anything that is outside of the payment to the brokerage will be in violation of the code. A one-time gift can be a nice gesture for a job well done, but as an investor you are trying to build a relationship with an agent who can see your vision and who is confident enough to do the lower price points now to help you get to the higher price points.