I am a new investor, in the wholesale - lease to own market, and recently spoke with a real estate agent who is willing to run comps for me. I told the agent I would pay a flat $150.00, plus 2% of what ever I make on any property I can close on. I'm only asking for comps on properties that I have gotten a signed agreement from the property owner. This way I am asking her to spend her time on leads that I have qualified, and where the property owner shows interest and motivation.
Does anyone know if I have made an appropriate offer? Should I have offered more or less?
I just reread your post after writing this reply and realized you said that you're offering 2% of anything you make (eg. $100 if you make $5,000), not 2% of the sale price of the property. I hope that is what you meant, because paying an agent a 2% commission for running comps is crazy!
IMHO comps are not important in the rent to own business anyway. Unless something unusual is going on in your market, most retail houses sell for +/- 5% of asking price. That range is well within lending guidelines and you can be perfectly confident that if you offer your easy-qualify home for a price around the average of what other sellers are asking, you shouldn't have any trouble moving it.
Hi Doug, thanks for taking the time to help me out. Sorry if my question was not clear.
Yes, I offered 2% on what I make NOT 2% of the asking/ purchase price. At some point I will want an agent to help me out by possibly showing houses and I really want the agent to understand that I'm not asking for their time for free, and if I do well then they will do a bit better for themselves.
So I'm still not sure if what I am offering the agent is too little, too much, or is it fair?
Thanks again, and much success to you!
That sounds very fair to me. I'd do that for you if you're ever looking to buy in Cleveland! :)
Thanks Nathan, I appreciate your feed back. More important, thanks for your service to our country!
Stay safe and much success to you!
The money you are paying is a minimal component that has to be approved by the brokerage first.
The bigger return to this agent is landing listings leads from you for properties where the seller wants to sell from your leads but they will not sell at a price to wholesale and want close to retail.
Thanks Joel, I appreciate that.
Much success to you!
100% Fair! Welcome to BP!
4408228422 | http://www.clevelandcashflowadvisors.com
Hey Isaac, thanks for the greetings, and I really appreciate your response. I can never feel like there is too much feed back.
Much success to you!
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!