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Updated almost 14 years ago on . Most recent reply
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Wholesale fee vs RE Agent commission
After doing some research I am leaning towards getting my real estate license. I do however have some questions concerning commissions. Is 6% the maximum I can charge when selling a house? For example, If I find a seller willing to sell at 40K, but I find a buyer at 50K. Is 6%(3K) all I can make on that particular deal? Can I charge the seller a higher fee?
I understand that I could make more in that particular deal if I would wholesale and then assign the contract. But I am weighing my options before I begin the courses for the RE license.
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I am not an expert at this, but I would suggest you only act as one party at a time.
If you want a listing agreement, you get a percentage or a flat fee (you can negotiate it) and you have to get the seller to sign a listing agreement. There is no cap to fees that I know of, but if you list it at 50,000 the owner has to agree to give you 10,000 commission which might be a difficult conversation.
If you are acting as a wholesaler (or principal) you buy the property and market it. The Seller typically does not know what fee you earn (or if they do it's near the end of the transaction).