Real Estate Agent · Dacula, GA · Member since 2013 · 33 posts · 3 votes
Hi there. I have a situation and not sure how to proceed. It seems that an Investor that I closed a previous deal with,has asked me, as a Real Estate Agent to List 5 Turn Key Homes but he's only willing to pay 3% Commission. I explained to him that he would need to pay 6% as I would have to share 3% with the Buyer's Agent. I do not want to miss this opportunity and so I was wondering, how to proceed. All suggestions and/or comments welcomed.
P.s. I also have an Investment LLC., if that helps in any way. I need to get back to him soon and let him know which 5 of his 20 Homes I will List.
Thanks again!!!
Investor · North Wales, PA · Member since 2013 · 116 posts · 44 votes
13y
While I think that you will still need to offer 3% to the buyer's agent, your 3% is certainly negotiable. You don't want buyer's agents to steer their clients elsewhere, which could happen if you did not offer the customary 3% to them. If I was in his position and you refused to budge from your 3% in return for 5 listings, I would take my business elsewhere.
Depending on the expected sale prices / work to sell the properties, I would think that you should be willing to take 1.5 to 2.5% commission on each. Offering to list them at 3% buyer's / 2% seller's commission seems a reasonable position to me.
Investor · North Wales, PA · Member since 2013 · 116 posts · 44 votes
13y
While I think that you will still need to offer 3% to the buyer's agent, your 3% is certainly negotiable. You don't want buyer's agents to steer their clients elsewhere, which could happen if you did not offer the customary 3% to them. If I was in his position and you refused to budge from your 3% in return for 5 listings, I would take my business elsewhere.
Depending on the expected sale prices / work to sell the properties, I would think that you should be willing to take 1.5 to 2.5% commission on each. Offering to list them at 3% buyer's / 2% seller's commission seems a reasonable position to me.
Investor · New York City, NY · Member since 2013 · 1k+ posts · 269 votes
13y
Carlos,
As we all know the agents Commision is negotiable. It seems your seller has five units tof give you immediately. That leads me to believe that he is a professional and will probably have ongoing units available for sale. If I were an agent I would not want to risk losing future business for short-term larger profits.
As a reference we normally pay about 3% on our single-family home sales as well. However we are offering a pipeline of homes for agents to sell on an ongoing basis.
Investor · Willow Spring, NC · Member since 2013 · 788 posts · 285 votes
13y
I've worked with listing agents that charge flat fee services and don't take a commission. Their services are pretty much limited to the listing; all showings, negotiating etc is on the seller.
I've seen between $300-$500 for this service. You get guaranteed money and the work to sell is on him and buyers agents.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
13y
For a 3% commission, that means if you offer the selling agent 2.5% which would be a minimum commission, your gross 0.5%. I don't care if you have 100 houses to sale, not interested! That's like in contracting, where you lose money on each job...making it up on volume doesn't work. If the seller keeps to this position, you're not missing future anything. Just tell him to call you when he really does want to sell them.
Real Estate Agent · Dacula, GA · Member since 2013 · 33 posts · 3 votes
13y
Thanks to all that replied!!! After speaking with the Investor, I just explained what the going rate is to List, he agreed that it is 6%, to List a Property, and I am now in the process of Listing them. They are located in Decatur, Lithonia, Atlanta, and Riverdale. I will be posting them on BP soon, so keep an eye out, and let's see where this goes. I learned that sometimes you just need to ask. He didn't make a fuss or anything. it's just the right thing! Thanks again for your replies and look forward to my Colleague request! Happy Investing!!!