From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.


General Info

BiggerPockets Q&A, Site Questions, & Announcements

1504 topics, 14360 posts — Last Post 04/16/14, 07:25AM

BiggerPockets Exclusive PRO Area

116 topics, 834 posts — Last Post 04/15/14, 11:19PM

New Member Introductions

10845 topics, 85239 posts — Last Post 04/16/14, 11:49AM

Real Estate Success Stories

391 topics, 6094 posts — Last Post 04/16/14, 09:57AM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5901 topics, 46551 posts — Last Post 04/16/14, 11:57AM


640 topics, 5788 posts — Last Post 04/15/14, 06:49PM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

236 topics, 1602 posts — Last Post 04/13/14, 02:11PM

Do it Yourself

653 topics, 6257 posts — Last Post 04/16/14, 09:21AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3652 topics, 29310 posts — Last Post 04/16/14, 11:37AM

Real Estate Guru, Book & Course Reviews and Discussions

1129 topics, 11532 posts — Last Post 04/16/14, 09:34AM

Ask About A Real Estate Company

736 topics, 7286 posts — Last Post 04/15/14, 02:45PM

Real Estate Investing

Real Estate Strategies


5583 topics, 43641 posts — Last Post 04/16/14, 10:51AM

Rehabbing and House Flipping

3320 topics, 30886 posts — Last Post 04/16/14, 11:43AM

Real Estate Development & New Home Construction

551 topics, 4678 posts — Last Post 04/14/14, 01:02AM

Innovative Strategies

698 topics, 5991 posts — Last Post 04/13/14, 06:35PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

863 topics, 6653 posts — Last Post 04/16/14, 08:56AM

Rent to Own a.k.a. Lease Purchase, Lease Options

689 topics, 4851 posts — Last Post 04/16/14, 11:39AM

1031 Exchanges

142 topics, 1050 posts — Last Post 04/16/14, 09:31AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1686 topics, 11281 posts — Last Post 04/15/14, 03:20AM

HUD, VA, and Tax Sales

414 topics, 3085 posts — Last Post 04/14/14, 06:29PM


1212 topics, 10563 posts — Last Post 04/15/14, 01:08PM

Short Sales

1533 topics, 13117 posts — Last Post 04/15/14, 07:10PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7186 topics, 70487 posts — Last Post 04/16/14, 11:59AM

Mobile Homes & Mobile Home Park Investing

636 topics, 5127 posts — Last Post 04/15/14, 09:59PM

Investor Basics

Starting Out

7673 topics, 60254 posts — Last Post 04/16/14, 11:57AM

Investor Psychology

430 topics, 6092 posts — Last Post 04/14/14, 06:53PM

General Real Estate Investing

4709 topics, 37142 posts — Last Post 04/16/14, 10:57AM

Real Estate Investor Marketing

1728 topics, 14072 posts — Last Post 04/16/14, 11:07AM

Commercial Real Estate

Commercial Real Estate Investing Forum

1408 topics, 8970 posts — Last Post 04/16/14, 08:17AM

Multi-Family and Apartment Investing

1101 topics, 9163 posts — Last Post 04/16/14, 11:59AM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

638 topics, 4883 posts — Last Post 04/15/14, 01:41PM

Business Basics

Goals, Business Plans & Entities

827 topics, 7526 posts — Last Post 04/15/14, 07:32PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2781 topics, 19974 posts — Last Post 04/16/14, 09:42AM

Property Insurance

308 topics, 2039 posts — Last Post 04/16/14, 10:10AM

Personal Finance Discussion

328 topics, 2690 posts — Last Post 04/16/14, 11:45AM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2823 topics, 19658 posts — Last Post 04/16/14, 11:16AM

Creative Real Estate Financing

1206 topics, 8758 posts — Last Post 04/15/14, 02:21PM

Crowdfunding Real Estate

35 topics, 455 posts — Last Post 04/14/14, 02:14PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1204 topics, 7944 posts — Last Post 04/16/14, 11:23AM

Bankers, Lenders, and Mortgage Brokers

440 topics, 1917 posts — Last Post 04/15/14, 07:37AM


261 topics, 1656 posts — Last Post 04/16/14, 06:23AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1981 topics, 11555 posts — Last Post 04/16/14, 11:16AM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

64 topics, 426 posts — Last Post 04/16/14, 08:34AM


Real Estate Marketplace

Real Estate Marketplace

14981 topics, 53853 posts — Last Post 04/16/14, 10:47AM

Real Estate Events and Happenings

162 topics, 2426 posts — Last Post 04/16/14, 11:36AM


Off Topic


2901 topics, 32397 posts — Last Post 04/16/14, 10:12AM

Housing News & Real Estate Market

913 topics, 8335 posts — Last Post 04/16/14, 10:58AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » Real Estate Agents » Real-Estate agent compensation?

Real-Estate agent compensation?

19 posts by 11 users


Real Estate Investor · Manning, South Carolina

Hello again all! For those who do not know, I'm a newbie wholesaler here in SC. and I'm in the process of building my investment team. A local realtor here has informed me that she has some experience working with investors and as a result I will be meeting with her later this week. Herein leis my question; Other than the commonly small commission that she will receive from a few of my normally very low accepted offers, what other incentives do I have (as a wholesale investor) to offer an agent for the giving of their valuable time and expertise in helping me to comp anywhere from 5 to 20+ possible deals per month with most of them being FSBO's.

Thanks in advance for all of your valuable time and expertise.
Reg. Jr.

Wholesaler · Valley City, Ohio

That is cool you wanna offer more up, but be cautious.They typically will not take any coin outside of closing that they do not split with their broker.

Just the fact that you are buying a lot of properties should be enough to keep em motivated!

Real Estate Investor · Houston, Texas

Lunches, and referral business works great!

Real Estate Investor · Manning, South Carolina

Hey thanks for the info and suggestions guys. And Danny the lunch and referrals tip is just awesome. It's simple and affordable! Oh and did I mention "affordable"? lol...

Real Estate Investor · Cheyenne, Wyoming

I have bought gifts for the agents I use from time to time. It all depends on how much help they give and how many commission they get.
I know if you pay them directly, they have to give it to the agency, and I don't even think they personally receive 30% of it.
But gifts are usually fine. You can have the agent find out what the policies at their company are. I would hate to get a good agent in trouble or at worst, fired.
Mainly if you begin turning some very profitable deals for yourself. I did something simple and cheap, my agent had always wanted one of those above ground pools for the summer, you know, 3' deep by 12'. So I just picked one up, dropped it off on her door step. I think it was only $100. It's amazing how hard some people will work with you when they know you care.

Rehabber · Toronto, Ontario

I try to take my agents out for lunch/diner as much as possible when they have been putting in extra work for me.

· Waterloo Region, Ontario

This is a question I get asked all the time.. if your an active investor and your buying from FSBO and the realtor is helping you out but not making much commission, then to keep them happy pay for the CMA. but only if asking for lots of CMA from them and they are not making money. on another note.. I want to applaud you for looking after your realtor.. you are amazing and an example to look up to.. with respect. T

Rehabber · Toronto, Ontario

Or if you are re-selling the property, I'd tell them that I will be listing with them. That will get them to help you out.

But if you are pretty active and are using the same agent/agents I'm pretty sure they won't even care to help you out.

My agents do some much for me to keep the relationship strong, and it's very much appreciated

Rehabber · Santa Clarita, California

You could also not pay them for the CMA's up front, but offer them the back end listing (if you are flipping) on your exit. Quantity should also speak for itself.

Small_be_logoWill Barnard, Barnard Enterprises, Inc.
E-Mail: [email protected]

Rehabber · St. Louis, Missouri

I pay my realtor with loyalty, he gets all my listings once I put them on the market and also my personal moves as well as 3 others that I have referred to him including one from Will himself. Also at least here in MO realtors get a minimum so even when I buy houses for 20-30K I think the buyers agent gets $1500.

Real Estate Investor · Ellicott City, Maryland

Just something to think about -- not all buyer's agents are good listing agents, and vice-versa. While you may be trying to do a good thing by offering to let your buyer's agent list your property, you may in-fact be doing yourself a disservice if that agent doesn't do a very good job of selling your property.

Give your agent the listing *IF* s/he is a good listing agent -- otherwise, give him a gift certificate to a nice restaurant and hire a good listing agent instead.

Small_lishproplogoJ Scott, Lish Properties, LLC
E-Mail: [email protected]
Telephone: 770-906-6358

Commercial Real Estate Broker · Canton, Georgia

I would also add I don't like the "Do this for me and I will pay you later with the listing" strategy.

This is the same as do bpo's for FREE and the asset manager company will give you the promise of a listing after so many freebies.

I have also seen this on buyer rebates where if the seller gets a rebate on the listing and the seller is supposed to use them to purchase and then uses yet another agent for a rebate on the purchase end.

I think a better way is paying a broker/agent for their time NOW and then when it closes they rebate off the portion of what is already paid out or just reduce their commission to compensate on the back end.

When I did bpo's we did this with asset management companies.We told them pay us now and when you assign a listing and it closes we will credit the bpo money off of the commission.

This kept them honest. I know many of the investors on this board are honest but for every one of you I can show 5 dirty investors that will use a broker/agent and spit them out.

Their is a fine line for a little upfront work to develop a relationship and flat out doing a ton of front end work hoping to get paid on the back end.That isn't a business to me but gambling as a broker/agent.

I agree with J Scott that a great buyers agent doesn't always make a great listing agent.

Small_allworldrealtyJoel Owens, All World Realty
E-Mail: [email protected]
Telephone: 678-779-2798
Website: 678-779-2798 [email protected]

Residential Real Estate Broker · Las Vegas, Nevada

Here is a typical fee schedule for BPOs from outsourced companies. $50 for Exterior BPO and $75-100 for interior.

Keep in mind a CMA takes 2-3 minutes while a BPO form takes about 30-40 minutes a piece.

If you want to compensate them, this is how they are compensated by banks/outsourcers.

Real Estate Investor · Manning, South Carolina

Wow! Awesome responses from some really intelligent people. With all of the terrific responses that you guys has shared I have had a serous paradigm shift in the way I was thinking about me and my Realtor's working relationship. However now I have another issue! How do I compensate all of you guys? Thanks a million.
Reg. Jr.
PS. You guys are truly heaven sent.

Real Estate Investor · Houston, Texas

I also 2nd that a good buyers agent isnt a good listing agent. Most of the good listing agents I know won't work with buyers. They just refer out the business to another buyers agent. @Reginald Smith Jr you'll learn that BiggerPockets is a great place for new investors as well as seasoned investors. No one here is or would ask you to pay for their advice. We all learn from one another and grow together. Pay it forward and help someone else out when you start closing deals.

Rehabber · Santa Clarita, California

How do I compensate all of you guys? Thanks a million.
Reg. Jr.
PS. You guys are truly heaven sent.
Actually, there is a way. Register for a BP Pro account or make a donation to Biggerpockets. These funds help Josh build in more benefits to the sight which in turn, help us all!

Small_be_logoWill Barnard, Barnard Enterprises, Inc.
E-Mail: [email protected]

Real Estate Investor · Manning, South Carolina

Thanks Danny for your post my friend however I was just kidding about compensating you guys. That's why I included the "Laugh Out Loud" symbol behind the comment. Nevertheless I am so looking forward to that day when I can pay it all forward by helping someone else out just as you guys (with your expert comments and advice) have generously helped me and so many others out.

Rehabber · Santa Clarita, California

@Reginald Smith Jr - I understand you were kidding, I was not. I believe it is ALL of our responsibilities to help improve the sight and that can only be done with cash. It takes cash fro Josh to buiold in new benefits for us and with more of us "giving back" through donations and Pro Account revenues, we all benefit. Pus you get a really cool badge on your profile! :)

Small_be_logoWill Barnard, Barnard Enterprises, Inc.
E-Mail: [email protected]

Real Estate Investor · Manning, South Carolina

"Nevertheless I am so looking forward to that day when I can pay it all forward by helping someone else out just as you guys (with your expert comments and advice) have generously helped me and so many others out." - Not Kidding here either guy...

Sign up