Wholesales buyer commission

6 Replies

Does anyone know what a fair commission rate for a wholesaler bringing a buyer in to purchase a contract?

@Christopher Courter   are you in that situation?  is the wholesaler is the one who brings the buyer, normally they add their profit on top of the price

There is a wholesaler who is bringing in a buyer on contracts that I have. He's asking if I offer a commission. I figured that the wholesaler add his own profit on the deal, but I'm wondering if he's just bringing in the buyer.

I am in that situation. In fact i just found out that its not another wholesaler, but a realtor who finds off market deals. 

So now the question is, is the rate the normal commission for a realtor? which, Ibelieve would be 3%?

Typically wholesalers will ask realtors to add their commission on top of the asking price.

@Christopher Courter This all depends in my opinion on the profit/spread. If it is a large spread and purchase then that is all situational and is really up to you and the buyer. In my area people want to charge 50% of the wholesale fee which I think is absurd. Let's say I have a property asking 80 and I got it for 70. They want 5k just for bringing me a buyer? I'm sure I could get a buyer if I lowered the price down to 76. I know this all depends on a lot of things but genuinely I feel if the only thing they are doing is bringing a buyer I would pay them a finders fee basically or maybe a certain percentage of the spread. I just don't believe you should give away half the profit if the only value they are bringing is the buyer. I would honestly put the ball in their court and ask them what commission or fee they are wanting out of the deal. If they are wanting an absurd amount that kills the deal it is better to know up front rather than at the closing table. Good luck brother and just trust your gut on this.

@Christopher Courter  

I'm a bit confused. Christopher you don't own the property? You have a seller under contract to sell or assign a property (and you're not a licensed agent).. a licensed RE agent has a buyer. 

hmmm. 


If the house was listed with RE company and you were the selling agent and another brought the seller, you'd be splitting the commission between the two offices. After-all, if you don't sell, you don't earn any money.

You have a few logical choices. 

  1. Split your fee (but not sure how that will roll with the agent's broker company as he/she is likely under a contract with the firm).
  2. Tell the agent your price is firm and if they want 3% it needs to be added on top of the price.. Write the contract up. 
  3. Tell the agent you're not dealing with RE agents (shoo) and go find your own buyer.

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