Do I pay the agent as a buyer?

[Christian Weber]

Looking into investing out of state (im licensed myself)

Agent out of state I was speaking with told me I would have to sign a buyers agreement that states they must make a min of x amount on a deal and if not I make the difference up (plus office fee). Home are around the 75-100k

Is this normal as if anything I was going to ask for a referral fee but noticing how low the prices was I was going to not do that.

Just wondering if this is standard practice,  I personally dont use those contracts myself with my buyers as if the house doesnt pay enough I dont want my buyer to pay. I will make it up on the next transaction.

Thoughts please

[Russell Brazil]

I charge a minimum. So if thr offered commission is lower than my minimum, my client would need to pay the difference. This will be the case on low priced properties. 

James Wise just had a good post on how little agents make on these cheap properties. On properties that cheap as you are looking at, an agent is making well below minimum wage.

https://www.biggerpockets.com/...