Received a phone message from a Realtor... - Posted by Constance(TX)

Posted by eric-fl on February 07, 2001 at 14:44:35:

well, normally they arrange the meeting under the pretense of the buyer wanting to see the house. Most end-user/retail buyers won’t make an offer site unseen, which is completely understandable.

I personally have no problem meeting with Realtor and buyer at the same time, since I really don’t have anything to hide, and it might make the buyer feel better (I’ve got my REALTOR with me! oooh, oooh!)

I just hate when it turns out to be Realtor, sans buyer. It’s like I tell my wife all the time (and why I no longer hold open houses): I’m selling a house, not giving a tour of homes. Which is, of course, what so many agents wind up doing unwittingly with unqualified buyers every day. Crazy.

Received a phone message from a Realtor… - Posted by Constance(TX)

Posted by Constance(TX) on February 07, 2001 at 10:16:23:

…last nite responding to a home I have for sale (with owner financing). She said she has a list of buyers who didn’t qualify for homes thru them that she would “share” with me. Now before I call her back, I have a question…

  1. Do you reckon she will be asking for commissions? or perhaps a finders fee?

I don’t have a problem with paying her a finders fee. But I’m not too keen on paying commissions.

  1. What would be a “fare” finders fee to charge?

I’m looking at $16K profit…so I don’t mind being generous.

–Thanks in advance for ya’lls help. I really appreciate this site and you kind folks for sharing you expertise.


Re: Received a phone message from a Realtor… - Posted by Bob (Md)

Posted by Bob (Md) on February 08, 2001 at 19:41:34:

I think most of the agressive agents keep a “pocket list”. This list might include B-credit types, but may also include investors. I know that I’m on a couple of these pocket lists, and the agents disclosed up front that they would expect the seller to pay a 3% commission (they’re watching for FSBOs and properties that fell off the MLS without being relisted that I might buy for an investment).

To me it comes down to time/money. Is it worth 3% to have someone introduce a buyer to me, or do I want to work the market and find my own buyer. That 3% finders fee would probably be equal to about 3 months of mortgage payments. But, I’d rather be rid of the headache, have money in my pocket, and be working on the next project. That’s just me - you might view it very differently.


Re: Finder’s Fees and Realtors - Posted by Stacy (AZ)

Posted by Stacy (AZ) on February 08, 2001 at 12:04:26:

In Arizona, it’s illegal to pay a real estate agent a “finder’s fee”, unless it’s shown as “commission” on all the paperwork. So, I use the word commission. (How do you think I know this.) Maybe you could save yourself a little embarrassment by checking to see if this is also true in Texas before offering it.

Just a suggestion.


Re: Received a phone message from a Realtor… - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on February 07, 2001 at 18:46:45:

Of course she wants to be paid.

What exactly is the difference between a commission and a finders fee?

My suggestion would be to negotiate the fee in advance and in my opinion a finders fee of say $500 and a commission of $500 would be difficult to tell apart.

You state that you want to net $16K but you did not give any details so I do not know if this is reasonable or not. A fair (not fare) fee would depend on whether or not your price is fair…negotiate.

Why don’t they qualify? - Posted by Brian Mac

Posted by Brian Mac on February 07, 2001 at 14:25:25:


Have her fax or send you the stats on the list of buyers she has along with what she expects as a fee or commission. Tell her to remove the names, addresses and phone numbers and assign each candidate a number. That way you can evaluate her list for yourself. If she has anyone that competes with the candidates you get from your marketing, give her a call and then try negotiating her fee if needed.

Have a good one.

Brian Mac

warning… - Posted by eric-fl

Posted by eric-fl on February 07, 2001 at 14:17:40:

Speaking as a Realtor (and NO, I have never done this…)

Some Realtors use this as a method of prospecting to try and list FSBO’s in a roundabout sort of way. They will call the seller (you) and say they have a buyer. They make an appointment, and show up - without a buyer! Of course, they never mention that. So naturally, you ask. Something polite, like “so is your buyer coming in another car” or something. They reply with “oh, THAT buyer decided to pass, this street was farther south than they wanted to buy.” Or north, or high, or low, or whatever. “But I have PLENTY of other buyers.” And so begins the pitch.

They never actually got to the pitch with me. I’ve got this really nasty look I reserve for liars… but I digress.

My point is, if they show up, without a buyer, kick them out immediately, and rudely. They-are-wasting-your-time. If you are brusque, then they won’t do it to you again. And they’ll probably tell their friends the same thing.

Re: Received a phone message from a Realtor… - Posted by Sherry W

Posted by Sherry W on February 07, 2001 at 10:40:03:


I put an ad in the paper for 2 houses with owner-financing and had realtors calling wanting to list or had buyers. I just got there info and filed away in case I needed them.

Well, I didn’t I have contracts on both houses(1-with taking 2nd back and the other one I don’t).

How long has your ad been in the paper? Took me about 2 wks. to get the buyers.

Good Luck,
Sherry W

Re: Received a phone message from a Realtor… - Posted by phil fernandez

Posted by phil fernandez on February 07, 2001 at 10:27:23:

It seems that all realtors have a list of buyers. And it’s funny that during the last week of their listing, they always have a hot buyer. LOL. But I’m getting a little of the subject.

Do you need the realtors list of buyers. That all depends on your market. Are you in a strong seller’s market. If you are forget the realtor. Even if your market is cooler, the fact that you are offering owner financing, should be enough for you, without the realtors help, to find a suitable buyer.

Now if you do go after the realtors list, she will definitely want to be compensated, as realtors are hand to mouth types, for the most part. I would only offer her a $500 to $1,000 fee if you sell to someone off her list.

Re: Received a phone message from a Realtor… - Posted by Nate

Posted by Nate on February 07, 2001 at 10:23:16:

My guess is she’ll probably want the standard 3% payment to the selling agent.

Would I do that? Depends on what the price of the home is. If this is $16K on a $75K home, where your commission to her would be $2250, maybe. Depends how badly you want the sale and what you think your odds are of getting it without her help. If it’s $16K on a $175K home, the commission would be $5,250 - a bit harder to swallow.

I doubt she would be content with a token finders fee, but hey, they worst she can say is no.


Re: Received a phone message from a Realtor… - Posted by Charles Steed

Posted by Charles Steed on February 07, 2001 at 23:40:15:

Why not call her, have a little chat, and ask exactly what she would want if one of her buyers ends up with the house. Then take it from there. Seems simple to me.

Re: A realtor would be a fool - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on February 07, 2001 at 19:04:17:

to bring a real buyer into a house that they knew nothing about. Why would they be that stupid. What is the best price and terms on your house? I will bet you do not start the conversation with your “bottom line” best price. So It would be highly professional if the
Realtor would visit the house and find what you have to offer before attempting to sell it for you. If you think that a good Realtor is going to expose a good buyer to your deal before the deal is known your thinking is way off base.

The Realtor is going to want to be paid. This is normal. The agreement to pay the Realtor needs to be in writing to protect the interests of both parties (you and the Realtor). Now if you are not willing to show the property to a realtor first, and to sign an agreement to pay the Realtor (the negotiated amount) then my friend you are the one who is not serious.

One more thing that almost all beginners fail to see is that Realtors also sometimes buy houses, with real money I might add. It is less than prident to take the position that because you are a Realtor, your money is no good here…Unless of course what you are attempting to sell is “no deal” at all.

Re: warning… - Posted by Nate

Posted by Nate on February 07, 2001 at 14:23:43:

I would not even invite the realtor to meet with me, for the reason you mentioned. Got a buyer? Then fax a written offer to me and I’ll get back to you.


Not advertised in the paper… - Posted by Constance(TX)

Posted by Constance(TX) on February 07, 2001 at 12:18:33:

…Yet! I got the contract this past weekend. Whipped out my digital camera…worked up a poster…and started putting flyers everywhere (apartments, stores, etc)

I am getting my ad together TODAY (for Sunday’s paper).

I suppose I could return her call and see what she has to offer. You never know…I may need her services someday. (I plan on getting into rehabs)

I received some REALLY good information on the posts below. Well see…


Re: Received a phone message from a Realtor… - Posted by Nate

Posted by Nate on February 07, 2001 at 11:27:05:

I would agree with Phil on the amount though. About $1,000 is as high as I would go, if I closed the deal with one of her people.


Re: A realtor would be a fool - Posted by eric-fl

Posted by eric-fl on February 08, 2001 at 09:02:14:


I think you misunderstood the intent of my post.

You stated - "What is the best price and terms on your house? I will bet you do not start the conversation with your “bottom line” best price. "

Speaking as a Realtor myself, I fail to see the difference between my “not starting with my best price”, and the typical listing. Almost no listings are listed at the bottom line price either. Yet, Realtors take prospective buyers to see these houses all day long, without ever having talked with the listing agent, let alone the seller. How much more do they know from the listing printout than they do from me? They might know things like year built, loan balance, taxes last year, etc. But that’s all public record, anyway. Or they could just ask me, I’ll tell them. Some sellers might not, but I will. As I said in another post on this thread, I really don’t have anything to hide.

As for the Realtor needing to be paid, I completely understand that. It has been suggested elsewhere in this thread to bargain down the commission, something I have never done. Also, they know I am an agent as well, before coming out. I reveal this at “first substantive contact”, as required by Florida law, which to me means, during the phone call. The conversation typically goes something like this: “Now, Eric, let me ask, would a 3% commission be acceptable?” Me: “Of course, that’s no problem at all. I actually have a license myself, though I own this house myself, it’s not a listing. I understand you need to get paid, I think we’ll all be on the same page when you come out to see the house”.

As for having an agreement in writing with me, that’s fine, but they don’t need that before coming out. Though you are right, there should be an agreement to protect their interests from the outset. It’s called a buyer’s broker agreement. I know you know what that is, as do most agents nowadays. But they don’t typically do it. Why? Because the Florida legislature basically changed the law a couple of years ago, and now, almost by default, the implied agency relationship is one of transaction broker, which severely limit’s the agents liability. Good for agents, bad for consumers. I think it was a bad legislative decision. The general public holds a low opinion of agents, and that’s not the way to clean up the reputation. Most agents don’t sign an agreement that explicitly defines a fiduciary responsibility, because the law says they don’t have to. Yet, if the agent wants to guard against an end-around between me and their buyer, they could simply sign a buyer’s broker contract. Of course, that would then hold them to a higher standard of accountability with their buyer. Perish the thought!

As for Realtors buying on their own account, your right, many do. But these situations I was referring to were not that. It was very obvious, the few times this happened to me, that there was clearly no buyer, and that they were prospecting. Besides, if they were buying on their own account, why not just say that at the outset? So that they could create a fictitious shill that they might “have to check with” as a negotiation tactic? If I discovered someone doing that, it would strike me as disingenuous, and make me less flexible in my dealings with them. If that’s what you mean by “no deal at all”, then you’re right, I guess it’s not a deal. Please take your money elsewhere. As I get older, I have come to understand that some things are really more important than money. I would rather sell for a few thousand less, and have dealings in good faith, than vice versa, any day of the week.

I agree … - Posted by Redline

Posted by Redline on February 07, 2001 at 21:59:34:

And if it turns out the realtor just wants to get a foot in the door to try to get a listing, then you can make your decision about how to handle that - if and when the time comes.

Good realtors can be VERY beneficial to your bottomline.