Alternative Commssion - Buyers Agreements

9 Replies

Any agent ever use the exclusive buyers brokerage agreement (fl) for a benefit to investors? Example a investor signs a agreement with agent for three months for 20k. 20k gets paid to the agent if the investor uses them or not and at the same time the 20k  gives the investor a set amount of transaction. And could you still keep the agreement as a transaction broker? Also 20k equals 10 transaction buying and selling of a home are separate transaction...so you could have two transactions on one house. Of course the numbers could change depending on skill level and location.

Of coarse what I put was a very crude framework just want to know is a agreement like that possible? If so, been successful? 

Curious if this is for an overseas investor for America properties or for American investor(s)? Its known that percentages are negotiable between the client and agent. The name of the game is getting the numbers to work and I can't see an investor(especially here in the USA) signing off on an exclusive agent agreement where they'd shell out $20K whether the agent is the procurer or not, at least not for any residential transactions.  My coin.

Kudos,

Mary 

Doesnt make any sense. Why would someone pay that to their agent?

As a buyer you pay nothing or next to nothing working with a buyer agent.

@James Wise  @Mary B.  

I guess I was thinking along the lines of a retainer you would pay to a lawyer and apply that concept to real estate. I know the commission is normally 50/50 split and paid by the seller. As buyer agent on "retainer" you could offer splits of 70/30 on commission that savings could be a selling point to seller (reduction of fees paid) or into seller agents pocket.

why the investor would pay...she really doesn't have an advocate for her position since everyone gets paid by the seller.

Does it makes a difference of calling them transactions or credits?

Again If im a buyer I dont see any logic to this.

Why would they pay you when everyone else is free?

Originally posted by @Daniel K Adderly :

@James Wise  @Mary B. 

I guess I was thinking along the lines of a retainer you would pay to a lawyer and apply that concept to real estate. I know the commission is normally 50/50 split and paid by the seller. As buyer agent on "retainer" you could offer splits of 70/30 on commission that savings could be a selling point to seller (reduction of fees paid) or into seller agents pocket.

why the investor would pay...she really doesn't have an advocate for her position since everyone gets paid by the seller.

Does it makes a difference of calling them transactions or credits?

I still can't see an investor falling for this. Even as a newb way back I wouldn't have but anything is possible. 

If you are looking to form a partnership of sorts with an investor splitting expenses as well as profit that may be negotiable but for you(the agent) to get thousands of dollars whether or not you're the procurer isn't logical to me. Have you presented this to any investors yet, besides via this thread? 

Kudos,

Mary

@Mary B.  

 No...it was more of a "what if" question...come at it a different way then what is normally done. Payment would not be lump sum. 

As an agent, I would never agree to that.  You would need to set a limit on hours worked.  Why not just charge by the hour instead?

Is rebating an option in your state?  If you are trying to attract buy/hold investors offering increasing rebates based on volume may be appealing.  

If you can't offer rebates on purchases, you might offer credits towards listing rentals.  In most cases you probably want to collect the coop half of the rental commission.  If you set the incentive right, you don't make much off the rentals, but you get an increasing amount of the investors business.  You also give yourself an inside track to get the sale listing down the road.

If the only value you place on yourself for example is giving a discount then it's not a long term way to succeed.

Find the property, control the property, make the rules on what you get paid. 

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