My Agent will be paid almost nothing...thoughts?
I'm finally settling on my first investment property next Thursday (though I've said that before with this property). It is an REO that I believe am getting a significant discount on.
When reviewing the paperwork with my agent, she told me that the seller (bank) is only paying her $300! She told me that her broker was upset, but she told the broker I'm a repeat client (bought my primary with her). I'm not supposed to "tell" anyone about it.
Not that I would anyway, but I'm guessing it's because of one of two reasons.
1). So that other buyers won't expect the same thing.
2). Politely indicating to me that I could increase the commission on my end.
Given a situation like this, is it common for buyers to increase the commission paid to the buyer's agent? Honestly, it is something I would like to do, as she helped me get the property for about $7,500 less than I was willing to pay, and $7,500 less than my lender thought I'd be able to get it for. Could I call the title company and tack some extra money on to my closing costs?
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I would pay the agent an amount that you think she is worth. In this case, she is worth a lot more than $300. The commission is based on the sale price. The lower the sale price, the lower the commission. As a buyer, the lower the sale price, the higher I will pay the agent from my pocket. This will motivate her to find you good deals next time.