I have a broker’s license for the purpose of being able to collect commission when I buy or sell my own investment properties. However, a lot of listings for foreclosures exclude paying commission to brokers that are submitting offers on houses they plan on purchasing for themselves. Anybody else ran into this problem? What is the reasoning behind this? Thanks
I for one never have had a problem paying a licensed agent a commission for the purchase of property for his own account. If it were me I would just want a discount in the price equal to my commission so I could change it to capital gains instead of earned income.
However, if the agent works for a broker who wants it as commission so they can get their cut that is one reason for receiving a commission. Yes I understand it generates some cash to use now so another reason for the commission. If the seller gets their price and I get my percent, why should I care if the buyer gets a commission I would have paid out anyway to any other buyers agent. I would flat out ask them why? I doubt the seller is paying a reduced commission because the buyer is an agent so listing agent greed is a good motive.