Finders fee Real estate Agent, How Much is fair????

Question

Hey all, I called a agent to help me find MHParks to buy in a different town. What would be a fair fee to pay the agent for bringing a deal to the table? He sent me a buyers agent contract for a year, including a 4% fee due even if I don't close because of circumstances being my fault. Im not signing that! I was thinking a percentage up to a certain amount.

Thoughts??

Patrick H. · Answer

The contract reads

If the buyer fails to close do to fault of the buyer the commission will not be waived and will be due and payable immediately.

This is not a foreclosure it is simply making a few phone calls to find a willing seller of a property that isn't listed.

Wayne Brooks · Answer

Assuming he's bringing you off market properties, 4% is fair.  That's what I charge for foreclosure auction property finding, as it's a cumbersome process that takes a lot of research.  As for the "charging the 4% if you can't close due to circumstances....", I doubt that's what it actually says.

Russell Brazil · Answer

Well what does the agreement say exactly. Are you unconditionally bound to the agent for a year?  I often put a year in my agreement, but our standard agreement in the DC area says that if the buyer signs with another agent, the original becomes null and void, unless they purchase a property that has been shown to them by the original agent.

Also there is a section in ours that says the agreement can be terminated with x amount of days notice. I usually fill mine in with 1 days notice, but many agents use up to 30 days notice.

Also is the 4% fee a hard fee, or is it offset by a cooperating fee from the listing agent?  Our standard agreement is a 3% fee, but this is paid by the seller, or not the buyer.