Investor buyer client terms
I have a reputation in the Greenville, SC area as a realtor who is an expert in the local the RE investing market. As it is, I backed into becoming a realtor after doing multiple flips, wholesale deals, rental properties, etc., and I love this career and helping people find great investment properties. However, the past year, I've found that it's becoming increasingly difficult to know how seriously to take it when I receive a call from someone looking to invest in Greenville real estate, and so I've implemented some changes to how I work with new "investor" clients in order to make sure that my time is spent working with only those who truly intend to invest.
I am now requiring a $500 up-front retainer fee along with a year-long signed buyer agency agreement that specifies a minimum commission of $3,500 (with the $500 deducted from that commission or refunded after first commission paid) for any new "investor" buyer clients. This agreement applies to anyone that wants services beyond simple automated MLS emails - services like showings, running comps, doing drive-bys, etc. And because I know many investors like to purchase off-market deals without a realtor, I am also putting a clause in the agreement that any purchases made without a buyer's agent do not apply. (In other words, I'm not asking to be paid for transactions where I don't do any work and in which there is no realtor involved.)
The thinking behind this arrangement is that a $500 deposit that is refunded after the first purchase is a reasonable way to identify who is truly motivated to make an investment-related purchase in the next year. If they can't agree to that, then I have a hard time believing they're truly serious about closing on a deal in the next year, at least one that involves a realtor. And I don't want to take my time away from people who are serious and give it to those who aren't.
I'm curious what you all think about this arrangement and if you've seen anything like it before.