![]() ![]() □□♀️įix and flip buyers typically have an agreement - implied or explicit - with their buyer's agent that the agent will be the listing agent when the rehab is completed and the property is ready to be sold on market. If this applies to you or your agent, read Wholesale Real Estate 101. □□Ī final example is when agents don't understand wholesale real estate and assignment of contract. This is an incredibly common occurrence and fascinating exposé of the failings of the current agency model and rampant breach of fiduciary duty. Going one step further, when they are told that they should have their buyer pay their commission or add it to their client's offer price, they steer their client away from the deal. The most cringeworthy example is perhaps when the buyer's agent contacts the seller or wholesaler and asks if they pay buyer's agent commission and then tells them that their commission is 4% (standard agent commission is 2 - 3% off market and on market). This is not the way to get your client a new property. □Īnother example is when the agent gets upset that the wholesaler is making more on the deal than they are, and then tries to reduce the wholesaler's assignment fee. One example is pushing back when the wholesaler's contract specifies a title company but the agent wants to try to change the title company. Asking a seller or a wholesaler to figure out how to pay the buyer's agent commission is an added complexifier and reduces the chance the agent-represented buyer will have their offer accepted.īuyer's Agent Off Market Faceplam MomentsĪside from the commission component, agents who do not have off market deal experience are known to add significant friction to the deal. Many single family and small multifamily investors deal direct and do not have agent representation. If you want the seller to pay your commission, then add your commission on top by increasing your offer price. Off market deals either do not involve a buyer's agent at all, or they involve an investor-friendly buyer's agent who understands that in an off market transaction their client (the buyer) pays their commission. Why? Because most off market deals do not involve buyer's agents who ask for the seller to pay their commission. ![]() Most off market deals for investment properties - properties in poor condition, distressed sellers, leased rentals - are not priced with the expectation that the seller or wholesaler will be paying a buyer's agent's commission. The Deal Is Not Priced For The Seller To Pay A Buyer's Agent There are a few reasons why buyers pay their buyer's agent commission: Unlike on-market MLS transactions where the seller pays the buyer's agent commission (typically 2.5% - 3%), the standard in off market and wholesale real estate transactions is for the the buyer to pay their agent's commission. Buyers Pay Buyer's Agent Commission In Off Market Deals ![]()
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