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Updated almost 5 years ago on . Most recent reply

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Cliff Orphe
  • Investor
5
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14
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How much should an investor pay agent to sell flip properties

Cliff Orphe
  • Investor
Posted

I am an investor and flip houses, I know the margin on deals aren’t always the greatest. How much should an investor who is bringing an agent repeat business pay to sell there properties?

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Marcus Auerbach
#1 Starting Out Contributor
  • Investor and Real Estate Agent
  • Milwaukee - Mequon, WI
6,455
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Marcus Auerbach
#1 Starting Out Contributor
  • Investor and Real Estate Agent
  • Milwaukee - Mequon, WI
Replied

Agree with @Jonathan Greene - I see the agents in my office who negotiate their commission; they know on some level that they don't bring that much value and are willing to give up some of their money. How do you think they will work and negotiate for your money?

The job of an agent is to make you the most on your bottom line. 1% on a typical flip is $2,500, which when taken out of an agents paycheck (after splitting it 4 ways with buyers agent and brokerage) is a big chunk. 

I can think of ten different ways how your net will go up or down depending on the agents performance by $2,500.

PS: when I was managing a business unit at corporate through the 2010 depression, the first thing the board wanted me to cut was marekting and sales people to combat declining revenue. I lost my respect for their business acumen that day. Talk about shooting yourself in the foot...!

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