I posted this under “wholeselling and agent comissions” and read through this entire thread to see if maybe it would be addressed, but take this scenario:
vacant property on lockbox
motivated seller
property listed with an agent
Make discounted offer, have retailer/investor lined up.
Do I include the 6% or whatever the agent negotiated with the seller in the discounted offer or
do I pay that out of my profit
does the investor pay that out of his/her profit?
Again, when getting a discounted propertyi] with an agent involved [/i] is the agent’s commission figured into the purchase price offer?
If I am flipping the property who pays the agent’s commission?
When you make an offer thru the agent the commission will be included in the offer unless you agree to pay all closing costs including the commission. You can do this but it is better just to let the seller pay the commission and their share of the closing costs including the title policy. They probably have already figured these expenses into the sales price.
When you resell it do you plan on using an agent or selling it yourself. If you get an agent involved you would be responsible for their fee. Your buyer could also have a buyers agent that may be looking for a fee too. It could get kind of confusing if you have a listing agent and a selling agent when you sell plus two agents when you are buying. I hope you can keep it simpler.