real estate fees on seller finance
Member since 2024 · 23 posts · 10 votes
I'm currently in the process of negotiating a seller finance deal, and I'm seeking some insights from the community regarding what would be considered a fair amount of commission for the real estate agent involved.
The property is unique in that it involves seller financing, and I want to ensure that the agent is compensated fairly for their expertise and efforts. I understand that traditional commission rates might not directly apply in this situation, so I'm curious to hear about any experiences or recommendations you might have. Also looking for insight on a good loan servicing company.
I'm currently in the process of negotiating a seller finance deal, and I'm seeking some insights from the community regarding what would be considered a fair amount of commission for the real estate agent involved.
The property is unique in that it involves seller financing, and I want to ensure that the agent is compensated fairly for their expertise and efforts. I understand that traditional commission rates might not directly apply in this situation, so I'm curious to hear about any experiences or recommendations you might have. Also looking for insight on a good loan servicing company.
If a real estate agent brought me a seller financing property I'd for sure pay 3% commission. I'm assuming they are representing the seller and I am representing me.
Greg,
I concur with Ken's advice. Based on the information provided, it appears the agent has presented you with an off-market opportunity. In such scenarios, a commission of 3% is quite standard, typically representing half of the usual 6% total commission allocated to the brokerage. This arrangement not only compensates the agent fairly for their services but also serves as a motivating factor for them to prioritize you for future off-market deals, potentially giving you an edge in the competitive real estate market.
When it comes to selecting a proficient lender, I have employed several effective strategies through my experience. Firstly, I recommend consulting with top-performing real estate agents in your locality. These agents usually have robust connections with adept mortgage brokers or lenders. The key is to identify those financial professionals who know how to get to "Yes", and who are relentless in overcoming challenges to secure the most fitting loan program or lender for your needs. Their extensive networking, both regionally and nationally, is invaluable in navigating the complex lending landscape.
Secondly, engaging with local banks and lending institutions can be highly beneficial. Their intimate knowledge of the local market often translates into more adaptable lending practices, particularly within their geographical domain. This localized expertise can prove advantageous, especially in unique or nuanced real estate transactions.
Lastly, I encourage you to explore the forums on BiggerPockets, specifically those focused on private lending, conventional mortgages, and creative financing. Pay particular attention to lenders who are actively participating in these discussions. Their involvement suggests a commitment to the real estate investment community and often indicates they offer loan programs specifically designed to meet the needs of investors like yourself.
I'm currently in the process of negotiating a seller finance deal, and I'm seeking some insights from the community regarding what would be considered a fair amount of commission for the real estate agent involved.
The property is unique in that it involves seller financing, and I want to ensure that the agent is compensated fairly for their expertise and efforts. I understand that traditional commission rates might not directly apply in this situation, so I'm curious to hear about any experiences or recommendations you might have. Also looking for insight on a good loan servicing company.
If a real estate agent brought me a seller financing property I'd for sure pay 3% commission. I'm assuming they are representing the seller and I am representing me.
No this is not the case, I did my own market research found the property myself and reached out to the agent who is listing the home. The home and sellers wanted conventional payment, but i was able to talk the agent into bringing a seller finance deal to the table. Sorry should have been more clear on the situtation.
You are not responsible to pay the commission as the seller and agents have a listing agreement that dictates how much that will be.
That said, I'm assuming the seller needs a certain amount of cash at closing from you in order to pay the commission, so as part of your offer, you could ask the agent if they would take payments over time with a reasonable interest rate secured by the real estate and this would allow you to come to the table with less cash.
It is not a high percentage of agents or brokers that will go for this proposal, but if you don't ask you don't know.