I have a rental property that I was going to put on the market to sell and I have a realtor/agent that I have aligned to work with me on this transaction. However, my tenant just informed me that he is interested in potentially buying it from me. In this case, how much percentage is appropriate for commission as my agent doesn't now have to do all the work associated with listing/marketing/showing? What are your advices in this scenario? Thank you!
Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
4y
Whatever you agreed to pay your Realtor in the Listing Agreement if the tenant is unrepresented and you're okay with an dual agency just ask you, Realtor, if they give you a discount most would do. You're Agent gets paid for the transaction and a transaction with a tenant as a buyer can go just as easy or bad as with any other buyer.
Rental Property Investor · Savannah, GA · Member since 2019 · 47 posts · 16 votes
4y
For me it would depend on if I have worked with the agent before or if this is a new collaboration. Either way, no one should work for free, so you need to ask yourself, how much did this person contribute to this deal. Did he/she find it for you? Did he/she come on board near the end? Etc. But some compensation would be appropriate, but its a spectrum from Amazon gift card to a couple thousand cash (tax free...#winning). But like anything else, if you take care of them, they will take care of you going forward. So look at it as buying a potential rock star. Hope that helped.