Seller agent in Detroit
Hi all - looking for recommendations for a seller agent who is well versed with real estate investing or has invetor portfolio. Also, looking for commission range between 1-3%. Thank you.
Hey Shiv! So it is pretty unlikely that you will find an agent willing to take a commission in the 1-3% range. Reason being is the seller agent ends up splitting commission with the buyer agent. Hence why you normally see commissions in the 6-7% range. It's even more unlikely an investor friendly agent will accept that since they typically bring much more value to the table. Not sure what your plans are but if money is tight FSBO may be the way to go. Hope this helps!
This is going to come off brash...
what you're asking for is a well educated and skilled surgeon recommendation that is willing to take a 50-75% pay cut for their skills. Those two never align. if someone offers 1-3% commissions, they're most likely not a highly skilled agent.
A good agent can net a seller $5-10-20k+ a bad agent, 1-2% savings on a lower sales price is less profitable than no savings on a much higher price.
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@Shiv A. you want a great agent who will negotiate well on your behalf, but you're going to start off by eliminating all the agents who can negotiate well on their own behalf? That's self-contradictory. Also keep in mind that listing agents split the commission 50/50 with the buyers agent, then split the rest with their brokerage, then split what's left with Uncle Sam because they pay income taxes on their take-home portion. Out of what remains they have to pay all of the expenses associated with the listing such as professional photos, 3D tour, floor plan layout, marketing, yard sign, lockbox, cleaning, staging etc. They also pay all their own expenses like health and car insurance, errors and omissions insurance, umbrella insurance, Realtor's association fees, MLS subscription fees, monthly desk/technology fees to their brokerage, vehicle maintenance, clothing, marketing and business expenses, retirement account, etc. The small fraction left over after all that is what they actually keep. For this reason, very few competent agents will discount their listing commission below 5.6% (in my market at least, it varies), some will go to 5% on a multi-million dollar listing but 1-3% would not be appropriate. 2.5-3% on the listing agent side with another 2.5-3% for the buyers agent, 5-6% in total is the industry standard. Asking for a sub-standard commission structure will limit you to sub-standard agents. A good agent will earn their commission by netting you more for your property and making the transaction as effortless on your end as possible. What's the value of the property?
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We can refer a great agent that does a lot of investment properties, but they won't work for 1-3%.
All - thank you so much for your quick inputs. And I understand the points raised here. As an investor, it is hard to give away so much on commission when this is supposed to be a "as is" property with little to no showing. I agree, maybe the standards of agent service will not be as professional and efficient - but my question is - are there any creative ways I can work with the agent to work something out that also gives me a break? Also, any tips on FSBO if out of state?
Just trying to gather information and develop options so I can maximize return on the investment.
Again, thanks for the pointers here! Appreciate it.
@Shiv A. Yes your Commission is low.. The Seller Agent will be Representing you and Negotiating on your Behalf.. There’s Showings, Inspections, Countless phone calls, Title Companies ETC