How do i charge so that i know this buyer is as serious as i am?

Question

my potential buyer wants land. I found some options. Now they want to visit the land. How much do i charge for my time if they now want to go see it and trusting me to go with them? I guess i need to make sure their serious and im not putting out all my effort to help them. By the way their willing to pay Millions on this land in Maui. Please help if you can. Is there a fee before closing and all that? Whats standard?

Nathan Gesner · Answer

I'm shocked that anyone would spend that kind of money using someone that has no knowledge or experience in purchasing real estate. This sounds like a recipe for disaster.

Jay Hinrichs · Answer

Lets talk about reality now.. Maui Land is very expensive like you said millions.. Any buyer who can pay Millions for land is simply going to talk to the broker.. Book a ticket which NOW you can do with Covid loosening up in Hawaii. And extremely unlikely your going to tie up multi million dollar land deals if you do not have POF and some serious deposit money . The listing brokers are simply not going to be fooled.

Now if these are friends and they want to buy your ticket over there for some reason etc etc.. you can ask for some sort of consultation fee and seems like they would pay it if they feel they are just helping you out in some way..

But how you would bring value to this deal is pretty tough to Imagine.. not to mention any kind of land development in Hawaii is some of the toughest in the US to accomplish many times taking 5 to 10 years just to get through land use etc..

Unless its just a building lot and your going for a single family permit thats not hard.. but any kind of real development is very tough.

Stephen J Davis · Answer

I don't think you can charge them to look at the property. You need to get control of the property before they go see it. This would require some earnest money. Make sure you have an out in case they don't like the property. Then get get your buyers to sign a contract subject to their inspection of the property with earnest money as well. This would be a double close deal.

Hire an attorney to help you with this!

Joe Villeneuve · Answer

Put yourself in their position, as if they are looking at their position and not at your position. How much would you be wiling to pay? More important, why would you be willing to pay?

Joe Villeneuve · Answer

I completely understand the value of what the buyers are looking at. For me, that wasn't the reason for question of "why" I asked. Your comment just above your reply to me actually answered it.

Jay Hinrichs · Answer

Land Development ------------ Hawaii = BIG MONEY

Ryanna Masiva · Answer

Thanks Stephen super helpful. I will do that

Ryanna Masiva · Answer

Im just starting out with wholesaling hence why im asking. These people are friends of family too. So I got the connection and spoke with the real estate agent and got the details on 5 potential land they are looking for. So now they want to travel to go see the land. All im asking about is if theres a standard fee for putting all this effort and helping to solve this for them before moving forward?

Steven Foster Wilson · Answer

Are you an agent? A wholesaler? the seller?

How do i charge so that i know this buyer is as serious as i am?

How do i charge so that i know this buyer is as serious as i am?

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