- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Advice on Paying Realtor When Buy Directly from Owner
Posted on 3/22/13 at 12:03 pm
Posted on 3/22/13 at 12:03 pm
I have a good friend who is my real estate broker, and he has done a good job of showing me places but I just haven't seen what I want. I am getting info on some houses that haven't hit the market and I have found that the best houses are bought before actually hitting the market. I want to compensate my friend to reflect the time he has put in if I were to buy directly from owner a house that never hit the market. Any advice on the best way to handle this or how much I should give him? Also, what aspects of the transaction can I bring him in on so that he can earn a fee?
6
Posted on 3/22/13 at 12:46 pm to ShreveportTIGER318
I'd send him a gift certificate to a nice restaurant.
Posted on 3/22/13 at 1:54 pm to ShreveportTIGER318
Come up with a reasonable hourly rate for his time, e.g. $10/hr. and give him a gift card to say thanks.
Posted on 3/22/13 at 2:34 pm to PhillyTide
My friend was a realtor as well, but also could not find me what I was looking for. I went with a more seasoned realtor and got the house I wanted and for a price much lower than the asking price. I bought my friend a drink the next time we were at the bar (he put in a few days of house hunting). You pay people for the job they do, not because they are your friend, but a case of beer should do.
Posted on 3/24/13 at 11:31 am to ShreveportTIGER318
He won't be your friend much longer if you get him a gc or beer for spending all that time showing houses. Look at it from his POV. He only gets paid if you buy. He must think you have a verbal contract to be is buying agent or he wouldn't be wasting his time with you. Always set the rules up front with friends and family so there is no misunderstanding.
Posted on 3/24/13 at 11:37 am to ShreveportTIGER318
I would say you don't owe him commission because he didn't do a good enough job finding a house for you. since he is a friend I would do a gift certificate and a thank you card or something.
Posted on 3/24/13 at 3:17 pm to MadDoggyStyle
quote:
He won't be your friend much longer if you get him a gc or beer for spending all that time showing houses. Look at it from his POV. He only gets paid if you buy. He must think you have a verbal contract to be is buying agent or he wouldn't be wasting his time with you. Always set the rules up front with friends and family so there is no misunderstanding.
I did tell him that if for some reason I bought a house before it hit the market that I would let him write up the bid/contract for a fee. I will probably throw some money his way too b/c he has put in a lot of time on weekends. It really isn't his fault b/c the inventory in the area I want is very limited.
Posted on 3/24/13 at 8:12 pm to ShreveportTIGER318
If an agent/broker works for you, teaches you the current market so that you know a good deal when you see it, writes up the offer and shepards you thru the process of mortgage, inspections and closing you owe a bit more than a gift card...
Posted on 3/25/13 at 12:15 am to sstig
Agree. If he does what you have stated, cut a check for $500.
Posted on 3/25/13 at 8:21 am to ShreveportTIGER318
Before I show a client a house i have them interview me on my knowledge of the market.If they agree from there to have me work for them, client will sign no less than a 6 month non compete with a 360 involving the purchase of a home. They agree that my compensation will be 3% of the purchase price. My brother in law just did this two weeks ago.
This is not an event like going looking for a grill or a watch. This is several hundred thousand dollars on the line. Its a full blown business transaction, likely the biggest one you have ever made to date. Treat it as such.
If you walk into it with a 'come on brah, you got your license, find me a house so we can go fishing this weekend' attitude, you are setting yourself and your friend up for failure.
That best houses never hit the market is absurd. Unless an in house broker knows another broker in house buyer's needs and there willing to pay full market value, that puppy is hitting the MLS. Last two years this has happened 3 times with my team, very small %.
If someone ask me to just draw paperwork, no other work in the process is involved, its 1% of the purchase price. If im carrying E&O insurance and signing my name to doc's/lending my expertise, im being compensated.
JM2C
This is not an event like going looking for a grill or a watch. This is several hundred thousand dollars on the line. Its a full blown business transaction, likely the biggest one you have ever made to date. Treat it as such.
If you walk into it with a 'come on brah, you got your license, find me a house so we can go fishing this weekend' attitude, you are setting yourself and your friend up for failure.
That best houses never hit the market is absurd. Unless an in house broker knows another broker in house buyer's needs and there willing to pay full market value, that puppy is hitting the MLS. Last two years this has happened 3 times with my team, very small %.
If someone ask me to just draw paperwork, no other work in the process is involved, its 1% of the purchase price. If im carrying E&O insurance and signing my name to doc's/lending my expertise, im being compensated.
JM2C
Posted on 3/25/13 at 8:26 am to ItNeverRains
Spot on. Noeaux umbrella needed!!
Posted on 3/25/13 at 2:28 pm to ShreveportTIGER318
quote:
I did tell him that if for some reason I bought a house before it hit the market that I would let him write up the bid/contract for a fee. I will probably throw some money his way too b/c he has put in a lot of time on weekends. It really isn't his fault b/c the inventory in the area I want is very limited.
You've got the right idea. He did work for you, and you're buying a house that was not available for him to show.
As you probably no, his hourly compensation for working with you is a negative number (license fees, CE, marketing, E&0, overhead and the like). People in the real estate profession get burned all the time, so you choice to compensate him should be appreciated. As with all things, communication is key.
Posted on 3/25/13 at 2:47 pm to Bill Parker?
Once again, the money board has provided me with some good laughs relative to Real Estate advice. Not all but most comments here must be indicative of a younger average age of poster on TD.
Carry On
Carry On
Posted on 3/25/13 at 5:40 pm to MoreOrLes
Yes, it is Mind over Matter...I got mine, yours don't matter.
Posted on 3/25/13 at 6:06 pm to ShreveportTIGER318
When did realtors start working for the purchaser, they earn a commission on the sale paid by the seller. If a agent brings me to a house listed by another agent and I decide to buy, it is up to the agents to determine how the commission will be split. I have bought 8 houses in 7 major citys, never has a agent expected anything from me other than show up to look at the property.
Posted on 3/25/13 at 6:51 pm to ItNeverRains
Just curious how much you'd charge a family member (son in law for example) for said services on an $800K house.
Posted on 3/25/13 at 7:06 pm to EA6B
quote:
When did realtors start working for the purchaser, they earn a commission on the sale paid by the seller. If a agent brings me to a house listed by another agent and I decide to buy, it is up to the agents to determine how the commission will be split. I have bought 8 houses in 7 major citys, never has a agent expected anything from me other than show up to look at the property.
How have you bought 8 houses in 7 major cities and still remain clueless about the process? I am primarily a buyer's agent. My client is the purchaser. The commission is already decided upon by the seller and the agents do nothing about commission except agree to the terms or not, bring them a buyer or not. I am paid my commission by the seller for bringing him/her a qualified, solvent buyer. The amount of due diligence, paperwork,disclosures, and putting out fires involved in a sale is much more of an intricate process today than years past.
ETA: When approaching a For Sale By Owner house, before I will bring them a golden buyer, the seller must sign a one client listing agreement and a commission agreement or else I tell my buyer they don't want to work with me, but they are entitled to pursue it on their own. I will help them gladly with paperwork for a reduced commission or agreed upon retainer, but that seldom happens in my experience.
This post was edited on 3/25/13 at 7:11 pm
Posted on 3/25/13 at 7:31 pm to BigAppleTiger
quote:
My client is the purchaser.
The buyer is often overlooked in RE transactions IMO.
Sellers like to think they are in charge, but it is the buyer's money that is making things happen.
Signed,
Caption Obvious
Posted on 3/26/13 at 11:54 am to BigAppleTiger
quote:
How have you bought 8 houses in 7 major cities and still remain clueless about the process? I am primarily a buyer's agent. My client is the purchaser. The commission is already decided upon by the seller and the agents do nothing about commission except agree to the terms or not, bring them a buyer or not. I am paid my commission by the seller for bringing him/her a qualified, solvent buyer. The amount of due diligence, paperwork,disclosures, and putting out fires involved in a sale is much more of an intricate process today than years past.
Exactly as I said you are paid a commission by the seller when you produce a qualified purchaser, call it what you want, but you are working for the seller.
Posted on 3/26/13 at 12:29 pm to BananaHammock
quote:
Just curious how much you'd charge a family member (son in law for example) for said services on an $800K house.
If no commission offered by seller, 1%. Still on hook for 800k if I'm part of transaction.
I have yet to see a house over 300k in my market where seller was not "realtor friendly" and offered at least a 2% commission to a broker.
Did broker a 20 acre land deal for investor and owner paid 1.5% (but I got him down from 1.5 to even 1)
This post was edited on 3/26/13 at 12:43 pm
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News