Hello, can anyone help me with this one. As a new wholesaler, if I can get a buyers agent to work with me and help find me MLS junkers…how does the agent get paid at closing. Does it go on the contract to purchase under the seller or buyer? I figure it goes under the buyer and gets built into the sale price.
I understand that it is preferable to have the seller pay for title insurance and deed prep. The Buyer will cover all inspections. But where does the agent’s percentage come from?
Thanks!
Hi,
I am a realtor who specializes in being a Buyer’s Agent, which means I work with investors who are trying to find great deals in the MLS. So, I will answer from my perspective.
The homes in the MLS have a selling commission built into the price. If you find a good Buyer’s Agent who will work with you, he/she will find properties that meet your requirements in the MLS and help you purchase the properties, and get them closed.
This agent splits the selling agents commission, which comes out of the seller’s proceeds of sale.
The bottom line is the seller payes the commission.
Jack Haydon
Thank you very much Jack. Do you find these to be relatively simple transactions, provided you find an agent who understands what you are trying to do?
I am a realtor who specializes in being a Buyer’s Agent, which means I work with investors who are trying to find great deals in the MLS. So, I will answer from my perspective.
The transactions can be tough depending upon the situation. Most realtors prefer to be listing agents for a reason - LOL.
Anyway, humor aside, I had one recently that will give you a flavor:
Divorce, and of course not a pleasant one. Wife is contesting everything, and husband just wants out. Each has own attorney, and the house is a mess because the wife has brought her lover in to help demo the inside.
My investor/customer and I determine a purchase price of $168k (56% arv) is right with needed repairs because comps indicate an arv of about $300k.
I have battled two attorneys and the wife for a month through delays and bull_____ to get the inspections, appraisal, and survey finished. LOL - I even had to climb over a fence to let the appraiser in when the wife had changed the locks. Persistence is the key - LOL.
Anyway, not all of them are brutal, but most are not pretty - LOL, because of the situations most people find themselves in when it gets this bad…
Hope this helps,
Jack Haydon
I have a question for the buyers agent. I currently started wholesaling property and dealing mostly with homeowners who are in pre-foreclosure.
I have a way of finding these properties without the use of an agent. However, of course the more the better. I have a friend who is a real estate agent as well as a mortgage loan officer.
My question to you is. Would there be any benefit to my friend the real estate agent if I were to try to work with her by her finding me homeowners in distress and my paying her a sizable fee if my deal went thru successfully. I wouldn’t want her to work by actually being an agent and therefore getting a commision, because that would defeat my purpose entirely. As a wholesaler, I would want to contact these homeowners in distress who are very motivated to sell or move, come to an agreement with them, and then find a rehabber or land lord to purchase the property.
My question is, if I were to have an agent find me these properties and like I said I offered to pay the realtor a sizable fee for finding me the homeowner, do you think they would be interested. She is a friend of mine, so I really don’t want to offer her something unreasonable if you as a realtor would think it as so.
Please help me with this.
<<The bottom line is the seller payes the commission.>>
Apparently, you’re new here Jack…I’m surprised that this comment went by so quietly!!!
Where are all my little “the seller pays for everything” piggies???
LOL
Keith
Actually, it was my employer who paid the commission. You see, I got paid and I’m just passing the money on to … Oh nevermind. ;D
The US Department of the Treasury pays the commission…after all, it’s their money, we’re just using it!
Keith
Thanks for all the input. Much easier to understand that IF someone has a property listed, they are already prepared to pay realtor fees. So, our realtor gets half of that, provided our low, low offer is accepted. I see why many realtors would not want to take time to make so many low offers…but I see why new ones would. Plus, they can help us get through the title search, etc. before we assign the contract.
Thanks,
Rick
I’m an agent in Ocala, FL. I prefer to be a listing agent for several reasons. One being I don’t like to truck around customers from one house to the other and possibly never realize a sale. However, on the listing side, there are downfalls too. Sellers who call you every other day asking if you sold their property yet, blah blah. But as a Broker, I tell my new agents that any work is better than sitting around waiting for nothing. So my opinion is find an agent who is willing to do the leg work for you to find the right properties. They are out there…even if they start calling fsbo’s (for sale by owners for those who don’t know the abrev.). Two things can transpire for an agent. They can get the co-broke (split) of the listing commission or they can sign up their buyer as a single agent and request the commission be paid by the buyer. (not very common as most buyers know they can get shown properties for free). Agents oftentimes have access to pre-forclosure lists through banks and clubs that non-realtors may not be able to access. The answer to your question of where does the agent get paid from is usually the Seller, but can be through the buyer. Talk about it with your friend. Here in FL, an agent cannot take payment legally from any source other than her broker. So if you want to pay her directly through a FSBO, or such, then ask about the Buyer’s agency agreement and put your fee in writing through her broker.