Buyer/Investor Agent

[Jasmine Claye]

What is the average amount that someone acting as a Buyer's/Investor's agent gets paid? i.e per house.

[J Scott]

Generally, they get paid by the seller based on the commission agreement signed by the seller and the seller's listing agent.

That said, in some cases, a buyer will be on the hook to pay for the duties of the buyer's agent, but the amount and terms of this payment are generally discussed and negotiated upfront.

When the buyer pays the agent, 2.5 - 3.0% of the purchase price is pretty standard.

[Jasmine Claye]

Originally posted by J Scott:

Generally, they get paid by the seller based on the commission agreement signed by the seller and the seller's listing agent.

Ok, im confused. Does the seller pay the buyer's agent or does the buyer pay the buyer's agent?

[Dale Osborn]

Seller is supposed to pay from the total listing commission. However, if not paid and there is a Buyer's agent agreement in place then the buyer pays. This amount is not "standard" as listed above. This is according to the NAR - the real wording is "it is negotiable" but the agents will only accept the "standard amounts" in reality!

[Jasmine Claye]

For a person to "act" as a buyer/invetors agent, they do not have to be licensed do they?

[Dale Osborn]

If they are trying to claim a commission off of you you might want to verify they are licensed.

[J Scott]

Originally posted by Jasmine Claye:

For a person to "act" as a buyer/invetors agent, they do not have to be licensed do they?

Yes, they must be licensed.

[Jasmine Claye]

Is Wholesaling similar to what a buyer's agent does?

Or is there something different about the two jobs that may allow someone to wholesale who is not licensed to act as a buyer.

[Brandon Kamm]

I would always recommend working with a licensed agent when looking for representation in a transaction or when looking after your interests.

[Steve L.]

Originally posted by Jasmine Claye:

Is Wholesaling similar to what a buyer's agent does?

They're quite different.

A wholesalers typically has the property under contract or an option to purchase the property. The wholesaler (party B) would make a profit on the difference between the purchase price (party A) and the sales price they sold it to the buyer (party C).

A buyer's agent shows the investor multiple properties and writes offers on that investors behalf. The seller typically pays 5-6% commission and it is commonly split between the listing agent and the buyer's agent.

Wholesalers are basically undertaking the risk and doing marketing to find properties under market value and is discussed a lot on this forum.

[Dale Osborn]

Most realtors do not hold any real estate investments while a wholesaler may own some investment properties on the side. Either way they are both looking to get to the closing table for their pay day.