commission/fee problem??

Question

I am currently working with what I would consider a really GOOD investment property buyer broker. I have yet to buy any property from him. No showings either. We have a casual relationship at the moment where he sends me all the properties he has in my target area. Provides spreadsheet analysis on request. Has even meet with me for meetings on 2 occasions. I can't emphasis even that he knows his stuff. Here's the problem. Everyone I talk to, including people in the biz all say his fees are too high. He recently told me that his commission starts at a minimum of 4%. I asked him about that, thinking that was too high, and he told me that the seller pays that fee. He also said there was a fee of $350 per purchase. And that would be my only fee. But here is where I am confused. He said that the seller pays the commission. But I say not always. Which means I would be the one left holding the bag, right??? When I question him on his fees he seemed to get mad/annoyed. I don't know what to do as we have developed a good relationship. He knows exactly what I'm looking for. What should I do??????????

THANKS to anyone who can help...
Chaz

THANKS to anyone who can help... 
Chaz

N/A N/A · Answer

Awesome reponse, thanks Aaron!!

Aaron Catt · Answer

Ask him for a breakdown of what services you get for his fee.  He should be able to provide you with a list of duties and describe his activities.
            
            As an agent who does 97% referral business, all of my good deals go to clients and investors who pay me what I am worth.
            Generally, if someone wants to negotiate my commission (my salary), I stop working for them immediately.  Although commission is negotiable, when I notice a client who starts shopping for a 'better deal' or discount, it's time to pull the plug.  I do however give my clients 'loyalty discounts' for their continued patronage.  I have made my investors far more than what they pay me and they know it.
            
            This is the business of building relationships and making deals.  If you can commit to a great agent, chances are he will commit to you and the next time a smoking deal comes across his desk, you'll be the first to be notified.

N/A N/A · Answer

Didn't get that, sorry...

Figen M. · Answer

Yes: you are paying  if the commission is paid from the proceedings of the sale price which is the cas in most of the real estate transactions.
If you can not find these properties by yourself, then it worths it. And these people lives with commision monies, he can get upset, would you be upset if somebody negotiate your salary even if you know you are doing a good job.
I am not justifying his commision but he might be getting what he deserves and you are the person who can decide.

And also my honest opion is that sometimes people intentionally talk about negatively about something and/or someone just to keep you stay away from him (why one more investor he should share his inventory !). You should be familiar with this business and market  and judge by yourselves.

So if you can not find these properties or someone else then of course he deserves it 
: )
Figgy