Realtor fees when I bring the buyer to the table
7 Replies
Harold Groetsema
Investor from Fairbanks, Alaska
posted 11 months ago
I have a question that I'd like to ask. I as a flipper worked with a realtor that charges me 4% commission when I sell my flips. If I bring the buyer to the table to purchase a property even before I purchase it to flip for said buyer, would I still have to pay 4% commission or split the commission with the realtor? This would be the 3rd deal that we have done together.
Mike Taylor
from Anchorage, Alaska
replied 11 months ago
Use FSBO or a real Estate attorney instead. I always sell through who ever brings me the deal, so I don't mind paying extra to sell as I wouldn't have the property without the realtor anyway. That's assuming your realtor brought you the property.
Harold Groetsema
Investor from Fairbanks, Alaska
replied 11 months ago
used realtor to buy property under contract now. Have a buyer wanting to purchase the home after renovation for set price already. Since the realtor didn't have to do anything to sell property other than paperwork, should they split the % equally between realtor and contractor.
DeeDee Cherubini
Real Estate Broker from Salem, OR
replied 11 months ago
Talk to your Realtor about it. Your Realtor may be willing to do the paperwork for you and your buyer for a flat fee or smaller commission since he/she doesn't have to market the property.
Curious, is it 4% total? Or 4% for the listing agent and they charge a total of 8%? If it's 4% total, that seems like a pretty good deal. Our area is 6%.
Harold Groetsema
Investor from Fairbanks, Alaska
replied 11 months ago
normal is 6%, this was an arrangement made between parties.
Wayne Brooks
Real Estate Professional from West Palm Beach, Florida
replied 11 months ago
He can Lower his commission but he can not split it with you (pay you any portion of it).
Harold Groetsema
Investor from Fairbanks, Alaska
replied 11 months ago
I understand that Wayne, but he can lower his commission to 2% and do the deal. I've done for sale by owner on other deals, but wanted to keep him on board and not feel like I'm undercutting him. Thank you for all your input everyone, I know what I need to do.
Mark H. Porter
Investor from Vermont and South Carolina
replied 11 months ago
This depends on what the realtor does to bring value to the deal. We've found deals but my realtor runs it from there - showings, inspections, code enforcements, the SPIR, tenant notices, necessary docs (lead paint disclosure, fire & safety, energy audit, minimum housing certificates, etc...). We're at a negotiated 5% now that is split between both sides.