Washington, Washington D.C. · Member since 2008 · 91 posts · 2 votes
In a wholesale deal where I assign the contract to a buyer, how does my real estate agent, who may have helped me identify the property in the first place, get paid? Do I pay him/her directly? Does the seller still pay the commission even though I'm no longer directly invovled in the sale? How does this work for a straight assignment? What about for a double closing?
Double closings are a little tricky...I would put an option on the property and then assign it at a higher value. Whenever the property closes then you pay the agent from your proceeds. Thats how I have always done it.
2) How come my agent doesn't get paid his/her 3% commission by the seller at closing like in a normal home sale (sellers agent gets 3%, buyers agent get 3%). Do I have to work out a special deal in advance with my agent?
An option is like a one page contract that says you have 90 days or whatever to buy this home at $100,000....in the contract it says that you can assign this option at any point. So, you assign it at $120,000 and when the property closes the seller has to pay you the $20,000...If the seller knows the agent then yes the agent should be paid by him... If you talked to the seller first then your agent did, I am not sure about that.. I have always just gave them some of my commission and everyone was happy...
Yes. An option gives the buyer the right to buy and the seller the obligation to sell. The seller must sell if they buyer chooses to exercise the option. The buyer, on the other hand, can choose to walk away. The seller does keep the option money, though.