Do I pay the agent as a buyer?
Looking into investing out of state (im licensed myself)
Agent out of state I was speaking with told me I would have to sign a buyers agreement that states they must make a min of x amount on a deal and if not I make the difference up (plus office fee). Home are around the 75-100k
Is this normal as if anything I was going to ask for a referral fee but noticing how low the prices was I was going to not do that.
Just wondering if this is standard practice, I personally dont use those contracts myself with my buyers as if the house doesnt pay enough I dont want my buyer to pay. I will make it up on the next transaction.
Thoughts please
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I charge a minimum. So if thr offered commission is lower than my minimum, my client would need to pay the difference. This will be the case on low priced properties.
James Wise just had a good post on how little agents make on these cheap properties. On properties that cheap as you are looking at, an agent is making well below minimum wage.
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