Realtor Compensation for "Off Market" lists?

Question

I would like to get some insight into what is the going rate for compensation to Real Estate Agents on forwarding the lists to us investors of the properties that have fallen off of the market/not under contract with anyone? How is everyone managing that relationship?

If you are in Arizona, even better.

Dan Olin · Answer

Scott. GREAT profile picture of the family by the way! My wife is a preschool teacher of 3 year olds!

Dan Olin · Answer

Thank you Scott for the feedback. It’s good to hear from those in the industry so that I don’t make assumptions.

Much appreciated!

Scott Anderson · Answer

They shouldn’t charge you. It’s too easy to do.

They should get payment through other transactions where they are used by you.

A finders fee is different. Pay them if they find a deal.

Dan Olin · Answer

Good input thank you!

Wayne Brooks · Answer

For a buyer, expired are s useless list. Any guess as to why it didn’t sell. You think maybe their agent repeatedly told them it was overpriced?

Brandon Sturgill · Answer

@Dan Olin MLS has strict data sharing rules...so over eager agents may be violating local board rules by giving you MLS data...it's good to take a quick check. If there is no issue, than an agent should not charge you for data...

What you have to remember is that you'll be competing with hundreds of agents that focus on this group and have proven systems and predictive analytics to get to these deals first. You'll need a very strong marketing approach if you decide to work expired MLS deals.

Chris Mason · Answer

The standard commission for a buyer's agent in the United States is 3%. In expensive markets like the SF Bay Area it is 2.5%. But everyone already knows that... @Dan Olin can you clarify your question? If a Realtor sends you info on 123 Main St and then you view 123 Main St with that Realtor and then you buy 123 Main St, that means that Realtor sold you that property and should get a commission check for that sale of 123 Main St to you. I'm confused...

Dan Olin · Answer

Thank you Grant! That gives me a place to start from at least right? I appreciate the feedback!

Grant Rothenburger · Answer

@Dan Olin

I have a wholesaler friend who send leads to a couple realtors when the seller is better suited to sell with an agent. He gets about 200 if the agent sells the property, not much but more than he would have received if he let the lead go. This was also a couple years ago, he may get more now. But I would think if you close on a property from those lists, a couple hundred for the agent would suffice. If it was a killer deal, maybe more. Or even something more personal, if you know they like a certain place get them a gift card there, something like that.

Dan Olin · Answer

So if it was you, what would you consider a worthwhile compensation to simply forward those off market properties to an investor? I simply want to make sure I esteem my Realtor relationships and not take the for granted.