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Updated over 4 years ago on . Most recent reply

User Stats

3
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Luke Johnston
  • Investor
  • Austin, TX
9
Votes |
3
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Negotiating Realtor Commission?

Luke Johnston
  • Investor
  • Austin, TX
Posted

Hello,

I'm working with a buyer's agent to make offers on properties. I'm making an offer on one SFH for about $170,000. We're also making an offer on a 4-plex for over $500,000.

Given that the 4-plex is more than 3x the price of the SFH, would it be reasonable to ask my realtor to do the 4-plex at a lower commission rate?

If so, what would be a rate to request that would be reasonable?    

At a 3% buyer's agent commission rate:

The SFH = $5,100 Commission to buyer's agent.

The 4-plex = $16,000 Commission to the buyer's agent. 

How much more work goes into the contract on the 4-plex?   Would asking for a 1.5% or 2.% commission be acceptable? 

Thanks for your advice/feedback.

Most Popular Reply

User Stats

2,091
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2,359
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Lee Ripma
  • Rental Property Investor
  • Prairie Village, KS
2,359
Votes |
2,091
Posts
Lee Ripma
  • Rental Property Investor
  • Prairie Village, KS
Replied

@Luke Johnston

As others have said it is paid by the seller. A 4plex is actually more work than a SFH. I think it's besides the point. The last thing you want to do is try to cut the commissions/profits of people working with you. You want them to bring you more deals in the future and not be the guy who nickel and dimed them.

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