Question on appropriate commission to negotiate...
I have a question on what is the appropriate commission to negotiate...
Background: For 5+ years my wife & I have been planning on semi-retiring & watching a semi-rural area (ranching/farming type community where you could commute to a big city) where other family members have retired to. Over a year ago we convinced my sister & her husband to also retire there and we jointly looked for a 20+ acre "ag exempt" property that didn't have restrictions preventing at least 2 homes. My sister found an agent and the agent helped us look at multiple properties. In the end, we didn't find a property we both liked/wanted (most were approx $200K-225k for the raw land) and we ran out of time so my sister decided that she instead wanted to get some 1-2 acre lots in a lake subdivision with amenites (pool, pavilion, boat ramp, basketball/tennis/volley ball courts etc)... In total the lots were approx $40K apiece and we thanked the agent for helping us.
Since then I have been watching that market and finally found a property that meets our original desires & is really close to the lake lot (we will try to keep that lot and maybe build a lake house one day or just use it for the amenities since the HOA is really reasonable).
Anyway, the property I found is likely to go between $325K-$375K total, is ~21 acres total (house .5ish & 20.5ish ag). We self-toured property (no agent on our side) & the house is likely not what most people want (older many-kids/large family style) but my wife & I are fine with the house overall... Most ~20 ag exempt acres I have seen in that area are approx $200-$250K so to me that means the house could arguably be approx $75K-$185K of the total deal depending on slice it. I am not sure exactly how this works but they put it up on the market as a 20.5 acre property but I think it is technically two 10ish acre lots with the house on one and .5 & house taxed as improved and 20 acres ag exempt (or something like that).
I frankly don't know much about proper due-diligence on buying properties and want help on validating many things (tax roles for the house vs. the ag property, should I make two offers (one for house and one for the ag property, etc)). I also want quality inspectors to review the house, wells, septic, barn, etc.
At this point I still don't have a buyer's agent. My brother and his buddy run a real estate company (re-finances, etc) and his buddy offered to represent me & rebate 2% of the 3% back to me but really doesn't know that area & I want some due-dilagence he likely can't do.
My sister recommended I talk with her original agent and tell her I found a property and would like that agent to do it but since I found it and did most of the leg work (up to now) ask for a percent or percent-and-a-half off (of the 3%).
Anyway, I thought this agent was "ok" and as good as any I had met though I personally would have chosen someone with more of a rural/ag focus. She appears to be pretty connected in that area and with me moving my family there with kids in those schools I don't really want to offend anyone for no reason...
Sorry for the long post but I figured it best to share the details as best I could to get a quality response. If you have read this far I really appreciate it...
Anyone have any recommendations/thoughts as to what reasonable discount/rebate, if any, I should be asking for if I go with this (or another) agent?