How does off-market deals work when presented by a REA?

[Amir B.]

Hello,

I never bought an off-market deal. The agent is asking for a 3% commission. I did see it on the FSBO website.

Is that normal? How do those deals work?

Thank you,

Amir

[Michael K Gallagher]

@Amir B. you can structure it several ways, as a "net offer" where you the investor pay all commissions and closing costs and the offer is to the seller as a net number.  This is often the best chance to get the lowest number.  If you are instead interested in putting as little down as possible, I'd suggest structuring the commission as part of the selling price so that the seller is technically paying the commission but they still net the same amount.  It really depends on your preferences.