Good morning BP community,

I'm back with another question lol I'm still learning. I need to know if there is a way to negotiate a assignment fee with a cash buyer before getting the property under contract? I don't want to risk getting the house under contract and not able to find a buyer or worse advertise the property as if I'm selling it or already have it under contract. I just want to make sure I'm doing this legally and right. Please help! I currently have 2 great opportunities but again want to make sure I do this the right way. Any advice is greatly appreciated. Thanks in advance.

Originally posted by @Toneisha Moore :

Good morning BP community,

I'm back with another question lol I'm still learning. I need to know if there is a way to negotiate a assignment fee with a cash buyer before getting the property under contract? I don't want to risk getting the house under contract and not able to find a buyer or worse advertise the property as if I'm selling it or already have it under contract. I just want to make sure I'm doing this legally and right. Please help! I currently have 2 great opportunities but again want to make sure I do this the right way. Any advice is greatly appreciated. Thanks in advance.

I don't negotiate my fees.  I just have them.  If the buyer wants the property, they pay it.  My suggestion is don't get greedy.  I charge $5k standard.  If the deal is large, then I charge more based on the size of the deal.

@Joe Villeneuve is correct. I don't negotiate my fees. I present the deal with the fee included. Either they like the price or they don't. Move on to the next buyer on your list if not. I generally get a little more than Joe with my average being about $10,000 but don't get greedy. Make sure the deal works for the buyer so that they keep coming back to you for more deals. Don't try to get rich off of one guy.

Most cash buyers use the MAO or similar formula when they buy. As long as you get a contract lower than the MAO, you should be able to sell it at or near that # and you won't need to negotiate your fee with your buyer.

@Toneisha Moore ,

The key is to get a good estimate for ARV and as good as you can, with some wiggle room, for repairs. If you have good numbers, the buyers will buy. And, yes, use the MAO formula.

A deal that goes " you will pay me X if I deliver property Y to you" is a kind of binding agreement conditioned on your delivering property Y.  So, yes, there is a  way to get the buyer locked in on your fee before you acquire the property.  Whether this is a legal arrangement in your state I can't say.