$30,000 finders fee on a foreclosure ?

Question

An agent wants to charge a 30,000 finders fee on a $250,000 property.  That sounds really high.  Is that normal?

Lydia R. · Answer

Absolutely not! If agent is representing one of the parties in the transaction they are entitled to a commission. But if they simply made you aware of a property that was available they deserve a $500 gift card and thats about it.

Roy N. · Answer

Tell me a bit more about the property Mr. Agent....

[Agent:  blah, blah .... blah]

Sounds like a possibility and your finders fee of $3,000.00 is reasonable.

[Agent: wah, wah ... wah ... $30,000]

$30,000?  I was certain you said $3,000 ... after all, no agent is going to ask an investor to pay a 12% "commission" for merely birddogging a property.

Marie Williams · Answer

Actually this is the best deal....most finders charge any where from 30%-40% of the $250,000----thats like $75,000 or more. I say go for it.

Roy N. · Answer

Alex:

Around here if the property is unlisted and the agent approaches the owner/seller on your behalf, then the buyer pays the commission.  When we do this, we typically negotiate a commission of 3-5% on a residential property and a capped/flat-rate fee on a larger property.

Alex Deacon · Answer

@Tarsha Adeyemi Thats completely insane. If you havent signed a buyer agency agreement then you owe the agent nothing.  Typically the seller pays the commission and a bank that would have to approve the short sale would allow as much as 6% total. I would let the agent know that you are very displeased and are considering going to the agents Broker. If you get no satisfaction there then the local association of realtors or the state association. If you have already signed a buyer agency agreement and the fee has been disclosed then you are kind of in a sticky situation.

Brett Goldsmith · Answer

Is the home a short sale?

That's a large finders fee!

Jeff B. · Answer

GULP!  Ask any title company and you can get a list, usually for free!!

$30,000 finders fee on a foreclosure ?

Most Popular Reply