Seller financing and agent fees

[Miguel Del Mazo]

Thanks in advance for your help.

I think I've found a good potential, large MF deal that would work well with a seller financing strategy. The properties are in a great school zone in an area that continues to draw in new tenants, has a diverse job market and enjoys great weather. Even at current, well below market rents, the 50 doors would generate 14k a month after paying the seller for the mortgage which leaves a lot to hire a property management company and save for CapEx. The properties are fairly new and externally (haven't seen the inside) are in pretty good shape.

My question is, when I approach the seller, who is using an agent, how do we negotiate the agent's fees? A typical 3% would require several hundred thousand dollars to be paid at closing. Asking the seller to pay that would be customary, but normally they are the one receiving a lump sum at closing. The deal still works if I pay the agent and the agent is willing to loan their fee at the same rate and terms I would ask of the seller, but would any agent be willing to do that? 

Thanks again for your help. 

[Russell Brazil]

Quote from @David M.:

@Miguel Del Mazo

As mentioned, since this property is already listed the seller has already agreed to pay the commission to his agent.  Don't overthink it when making your offer.  The commission are his fees, not something for you to worry about.  

Also, you might consider getting your own agent to help represent you.  Your agent will be getting a "cut" of the commission paid out by the seller.

Good luck.

In commercial transactions the buyer typically pays their own agent