Canyon Country, CA · Member since 2016 · 20 posts · 2 votes
I am working with a fella that I contacted to just get an idea of the market in the area before I purchased a property at an online auction. I am already going to pay him a 3% commission for the purchase as he has been inspecting the property multiple times and giving me regular updates on the market and pointers on how to negotiate with the seller (bank), but he is also assisting me with getting bids for the rehab. He is being my boots on the ground.
When I sell the property (leaning towards a fix and flip), it seems that the commission is not enough compensation. If he gets the full comission, it might be fine but 3% on an $80K home, is that adequate for managing the rehab and selling the property? As there a contract the a specific contract that I should use with him for this work?
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
9y
Sharon Anschultz Pay him full commission on whatever is market, as well as pay him as a project manager as well. From that figure, you can negotiate a discount.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
9y
Sharon Anschultz No idea on other states, but our company charges 5k/mo for 3 visits/week/site including all paperwork up to 1M project. 3k/mo for 2 visits/week/site up to 300k. We cater commercial not residential. I'd say start with full commission as buyer agent and full commission as seller agent, then add project manager, that will be my MAXIMUM pay, and if you can pay 60-80% of that, then I think that would be fair. Like anything else, that I do transaction, I always want to know what they want to charge before I let them do it, since it is one's time I will be using/wasting and I have no idea how much they value their time, I let them spit the number then go from them. Go low and it will make you look cheap, go high and you are wasting money on the table.