Realtors Commision

Realtors Commision

Hi All,

Should I be taking into consideration the realtors commission when figuring out my offers. I don't see that mentioned anywhere.

Thanks,
Doug

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Doug Gregory

"it's only an island if you look at it from the water"
Chief Brody "JAWS"


Figure it in

Yes. Remember when you are figuring out the FMV and your top offer price, you have to look at it from the perspective of the end buyer, and figure in all of the costs that they will encounter.


Realtors Commision

Remember the the agents commision is always paid for by the seller. If you are doing an assignment of contract you will not need to pay the agents commision. You need to know how much below value the investor usually buys properties at. I run my numbers this way when figuring an offer price for an assignment.
Fair market value of home is $100,000
Investor wants a 30% discount
property needs $10,000 in repairs
I want to make $5,000 for my fee

100,000
-30,000
-10,000
-5,000

=$55,0000 Maximum offer price
-10,0000 for room to negotiate

First offer would be $45,0000

This is the formula for an offer price when doing an assignment of contract.

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