Thank you in advance for reading this.
I recently just got a property under contract. Comparing the ARV to the price I got the property under contract for is about a $180,000 spread.
I've been working on this particular property for the last year or so. The reason it took so long was timing. I was honestly somewhat tired of the excuses that I received from the sellers of why they weren't ready yet but I knew deep down inside that they were SERIOUS about selling the property. It was all because of procrastination. Yet they were and are amazing people. I kept remembering reading about the follow-up and consistency. I've closed on multiple properties before now since I started my real estate journey about 2 years ago so this wasn't new to me. Just have to be patient. What's new to me now is that I am partnered with someone and not an employee anymore.
My partner provided the marketing and I worked the phones, found the deal and got it under contract. This particular property took about a year to close. The property would probably need anywhere from $50-60k in remodel. Considering that with the $180,000 spread, and the fact that my partner funded the marketing,
What do you think would be a fair fee to receive for this property if you got it under contract?
Thank you in advance for your reply.
There is really no such thing as a "fair" fee.
Figure out what and end-buyer will pay for the property and then you make money on the spread. You should rightly make as much as you can. From that perspective, the market determines what is fair, regardless of whether your fee nothing or a million dollars.
Thank you @Greg Scott for your insight.
Forgive me. I just want to better understand.
When you say, the market determines what is fair, can you give me an example using numbers?
I apologize for my lack of understanding.
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