Realtor asking for $4000 fee

[Alan Walker]

I'm purchasing a property for $45K cash.  I brought this deal to a realtor i'd like to build a future relationship with.  She is asking for a flat fee of $4k.  This seems high.  Has anybody seen this before and does this make sense?

Thanks,

Alan

[Charlie MacPherson]

@Alan Walker  As a former Realtor, I'd say it's not at all unreasonable.

Let's say that $45K house is at 3% commission.  The Realtor is going to work every bit as hard and maybe harder than she'll work to sell a $500,000 home.  Low range homes often take more work because they tend to be in worse condition and require more inspection visits and tougher negotiations.

The difference is she'll earn $1,350 vs $15,000.  Of course, she'll split that $1,350 with her broker.  If she's at a 60% split, she'll take home a whopping $810.  Not exactly windfall money here.

Even at $4,000, she'll only take home $2,400 for her expertise and work.  That's a pretty crappy paycheck.

Finding the deal is the easiest part of the job.  The rest of it is where Realtors earn their money.  Negotiations, using the right forms to keep you out of trouble, chasing people to get those forms signed on time, disclosures, comps, wrangling inspectors and re-negotiations and appraisers, managing deadlines - and the list goes on and on.

The fact that a good Realtor makes it look easy doesn't mean it is. 

You've said that you want to build a relationship with her.  Presumably that's because she's a solid agent that you want working for you.  The best way to get that relationship started is to pay her fairly for what she's doing for you - especially if you want her to take your calls for the next deal.