Need Help! Question for Realtors
I want to fix and flip a home. Specifically add-a-level to a single family and upgrade the initial first floor. If the home purchase price is 300k and the ARV is 450k, would a realtor agree to waive the 3% buy commission if we draft a contract that I would sell with them at 3% for the higher ARV value five to six months later? That works out to be $9,000 for the initial 3% commission waived, instead for the $13,500 commission on the sell later. That's $4,500 more that would be guaranteed I would sell with them. What about the same contract above, but this time if I decided to hold onto the property for 2 years to avoid capital gains tax. This time the commission might be even higher with appreciation. Is this something reasonable? What are your thoughts and how else could I structure this? Thank you