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Updated almost 15 years ago,

User Stats

60
Posts
11
Votes
Danielle C.
  • Real Estate Investor
  • Naperville (Chicago), IL
11
Votes |
60
Posts

A to B agent commissions confusion

Danielle C.
  • Real Estate Investor
  • Naperville (Chicago), IL
Posted

Hello,

I’m a little bit confused about agent commissions and have a few quick questions before I contact any. On the A to B side, if there is no listing agent and I am using a buyers agent to kick deals over to me, what percentage commission do they usually make?

I understand that I can pre-negotiate a fee with them, however I would just like to know what the usual fees are so I understand where the starting point is.

Since these properties won’t be listed, the only agent involved on the A to B side will be mine. In this scenario, what is the normal fee for a buyer’s agent – 3% or 6%?

Because there is a chance the bank won’t pay A to B commissions and I may have to cover out of my spread, I would like to keep the A to B side as low as possible. I am thinking that I would like to offer a point or two on the A – B, and allow them to re-list the B to C at 6%. A couple of points for pulling some comps and sending somewhat pre-qualified leads my way isn’t too bad at all. Any thoughts on this?

Ideally I would like to forgo using an agent all on the A to B, however just starting out, I think they are going to be very helpful in generating business.

Thank you!
Danielle

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