Do you pay the buyer's agent a commission on your flips?

Question

I'm an investor who also has my real estate license. My primary focus has been on rentals. Now I'm switching gears and focusing on flips.

How have other agents, who do their own flips, agreed on a commission with another agent if you are both the owner and agent of the property being sold? I'm assuming you're not paying yourself a commission (except what you owe your broker) since you're keeping all the profit from the sale. Are you paying the buyer's agent 3% or doing something different?

Charlie DiLisio · Answer

I use snapflatfee.com who is also a bigger pockets member Jorge Zea. The deal with them is a flat fee of 100.00 total to list on the MLS and they list it with all the FSBO sites and I use my own number with them so all prospective buyers have to call me to give them lockbox codes so I have full control of the listing. I also have the ability to sell the house myself as an owner. You can offer what you want to buyers agent and I have been offering 3%. If the property sells that is all I pay. I just sold one last week with a buyer that I showed it to myself so there was no commission paid except for the $100.00 flat fee. Great program and easy to change the listing, upload new photo's, etc. Win-win for me. I know he is registered in two states so worth a look. I am quite satisfied with the program.

Jake Thomas · Answer

I always pay the buying agent for any of my properties the full 3% as without them I wouldn't sell the property in a timely fashion.

Dave Van Horn · Answer

I agree with @Ryan Murdock!

If it's not selling you could also put a selling agent bonus on the listing for an acceptable offer. You may also want to consider offering a home warranty to help sell the property.

Best of luck.

- Dave

Ryan Murdock · Answer

Offer a competitive commission for your area. If a common rate in my area is 2.4% for buyers agents I may even offer 2.5-3% just to stand out a little more.

Jorge Zea · Answer

Thanks @Charlie DiLisio for using us and for your comments. As @Russell Brazil mentions, you have to offer a commission to buyer's agents to get listed in the MLS. We also list a lot of properties for Realtors like him and they avoid having to pay the split to their own Broker (most don't give agents a break on your own deals as his broker does). Unfortunately we are only in FL, MA, CT and CA for now.

Russell Brazil · Answer

Yes you have to pay the buyers agents commission. Pay what is consummate in your market. Most markets 2.5%-3% is the going rate. I also pay myself a commission on my flips. Most brokerages will require that you do pay yourself a commission, but most will give you a break on the split for your own properties.

Do you pay the buyer's agent a commission on your flips?

Do you pay the buyer's agent a commission on your flips?

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