Agent Commission Deal when Flipping
Hi all,
Wondering what your thoughts and experiences are on the following:
I'm a flipper, and as an 'incentive' for agents/brokers, I generally agree for them to be the listing agent of a property that they originally refer and complete with me as the buyer's agent. For example:
John, a realtor in one of my target areas, will call me as soon as a great flip opportunity hits the market. If I end up going after the deal, he'll represent me as the buyer's agent as he brought the opportunity to me. At the same time, I'd have him be the listing agent on this property once I completed the rehab on it.
Therefore, John is 'incentivized' to call me up if he comes across great flip opportunities as he's getting two commissions without any additional 'hustle' (and as part of one original deal).
When I purchase the property, the commission is paid by the seller (and let's just assume that's 3% for my agent - as the buyer's agent). However, what's your thought/experience in regards to what the commission could/should be for my agent when selling the property again? I certainly want to ensure that John is still incentivized but I also want to make sure not to pay 'too much' as he's getting two commissions for presumably less work/time than two seperate deals.
Thanks in advance