OfflineHow much or what percentage does a real estate agent usually gets for helping you.i know it Vary's but just need a rough idea how to negotiate with them. i"ll be speaking with one in an hour. thanks for your Help!
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For thou, O God, has proved us thou hast tried us, as silver is tried. Thou broughtest us into the net, thou laidst affliction upon our loins. Thou has caused men to ride over our heads, we went through fire, and through water, but thou broughtest us out into a WEALTHY PLACE. Psalms 66:10-12
When you buy a property, the seller pays your agent. So when you buy, try and make sure your agent gets the full 3%. It comes out of the sellers money, not yours. So your agent makes money when you close, you don't come up with the money, the seller does.
When you sell a property you usually pay between 4.5% to 6% total buyers and sellers agent commission since you are now the seller.
It's all negotiable to some extent.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Hey Thanks Micheal, just to be clear this same method still works with your realestate agent helping you in assignment of contracts? Thanks
For thou, O God, has proved us thou hast tried us, as silver is tried. Thou broughtest us into the net, thou laidst affliction upon our loins. Thou has caused men to ride over our heads, we went through fire, and through water, but thou broughtest us out into a WEALTHY PLACE. Psalms 66:10-12
Im glad to see Michael supports making sure the agent receives what is considered a standard fee when possible. I'd like to expand on that and give you some information from a Realtors point of view.
In general, there are two agents involved in a traditional transaction. One represents the seller, and one represents the buyer. The standard fee is 6% of the sales price, which is split between the two agents. If the sellers agent finds the buyer on their own, they keep the full 6%. If the property is FSBO but your agent comes across it and negotiates a deal for you, and the seller is unwilling to pay their fee, you should compensate your agent yourself (in these cases 3% is ok, since they are not involved with the sellers side of the transaction). You can add it to the sales price of the home so that they are still paid at closing and it doesn't come out of your pocket.
Bottom line is, if a Realtor is your main source for great deals, don't try to short change them. If they keep you busy (and vice versa) and you're making money, you might even consider offering them bonuses so they can share a small slice of the profits. If you aren't depending on them to do all the research, leg work, paperwork, etc., and you really just use them to submit offers, then you can negotiate a lower rate. But the saying 'you get what you pay for' definitely applies... you don't want to low-ball your agent so that they feel unappreciated and start taking the best deals to an investor who will pay them more.
Good luck and I hope you find a good fit!
Monica
Monica
Skeptic, turned hopeful, turned determined!
You will NEVER succeed if you don't try.
WOW, thanks very well said. Got it!
For thou, O God, has proved us thou hast tried us, as silver is tried. Thou broughtest us into the net, thou laidst affliction upon our loins. Thou has caused men to ride over our heads, we went through fire, and through water, but thou broughtest us out into a WEALTHY PLACE. Psalms 66:10-12