I am currently interviewing brokerages to hang my license. I'm interested in hearing the commission your broker takes on your flips or if you attempt to sell them as fsbo. Do you earn the commission on reos when buying or do banks usually withdrawal a commission if you are the realtor? Thanks for any insight.
@Tim Mensch , I think this is several different questions, so I'll try to answer them individually.
I am a licensed agent in CO. I found a broker who charges a flat rate for any deal I do. I have heard of commission splits up to 60% to the broker, 40% to the agent. I think 50-50 is average for brand new agents.
As an agent, you can sell FSBO, but you must disclose that you are an agent. I don't think this is a good strategy, because it looks like you aren't supporting the industry. You should ask prospective brokers if there would be any sort of discount when you sell your own properties. Everything is negotiable - the best time to negotiate is before you start.
You still earn commission on REO sales for the most part. Double check before writing any offers.
For your questions, please ask the brokers you are interviewing, because state law will dictate the answers. For example, in MN, you can never really sell FSBO, because you have to disclose your license status, and if you do that, you have to have your brokerage name involved. In WI, you can do it in certain limited situations. Your broker may prohibit it due to E and O insurance restrictions. Each broker has their own rules about charging office fees with personal transactions.
About getting commissions on your own REO purchases, it depends on the state. In WI, it has to be written in the contract to be able to receive commission. In MN, it is automatic in most situations as long as you disclose your licensed status.
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