2006-09-05 12:50:01 · 7 answers · asked by Anonymous in Home & Garden ➔ Other - Home & Garden
I would give my friend 10% of my profit. Assuming you're making profit on the house...
if they are a licensed real estate agent, find out what his/her usual commission is and negotiate from there....
2006-09-05 12:56:51 · answer #1 · answered by angiesdabomb 2 · 0⤊ 1⤋
It is illegal to compensate a non-licensed person for real estate negotiations or transactions. You may make a non-real estate related "gift" of any amount up to $11,000.00 and that person will not have to pay taxes on the gift.
However if you were intent on compensating someone, why take a major risk with your home by using an unlicensed, untrained, uninsured, and inexperienced person who has virtually no access to the real estate market? Do you think a newspaper ad or internet ad will sell the home? Hardley, they are just tools that licensed agents use to attract traffic. Buyers seldom buy the property they call for. The safety for you is that if you too are part of the inventoried property you stand a far better chance as it is exposed to the maximum number of home seekers in your market, and the odds are that over 80% of them will buy via a licensed broker. If you use a friend, and if the deal goes sour and ends up in a court of law, will your friend also go to bat for you? That will cost them money. What if you have to SUE THEM? Friendship no more. Risky, very risky indeed.
Would you go to a want to be doctor who lacked credentials, like a college education? Stock broker? Auto mechanic w/o training? Hardly. This is no different. State laws regulate this industry and have enough complaints and law suits annually that they made laws to protect YOU against all the things I already pointed out.
Think about it. If do this deal with an unlicensed person- friend or otherwise pray that it stays done. But for the next yr or so according to your states statutes there is risk. How do you know that you complied with all state disclosure laws?
You need a licensed broker. Get one with CRS, GRI designations and a full brokers license. Also a top broker in the market. They will get top dollar in the shortest time with the least risk while compling with state or federal laws. And your friendship will remain intact, no risk incurred.
2006-09-05 20:59:53 · answer #2 · answered by hithere2ya 5 · 0⤊ 0⤋
at least 1%... at most 3%
Only if your'e selling your own house, and your friend doesn't have a license. Just a written agreement between you two. (In sales of real property, all parties involved need to have written agreements. Verbal agreements just won't do.
If your asking price is under 400,000 then up the percentage. If your asking price is above that... then lower the percentage cut.
Most real estate agents ask about 6%. This doesn't include closing costs and repairs. This is standard. The escrow company then takes the 6% and divides it up among the seller's agent, and the buyer's agent. So, that's 3% for each agency. Then some agents get 50% of that and some get 100%. All in all the agents get around 1-3% of the sale, and your friend doing your negotiations should get the same respect.
I would reccomend getting an agent. (You get what you pay for) and they do all the dirty work for you. (It's a whole lot of escrow and closing crud... and notary, and negotiating, and offering... that you shouldn't have to do if you don't know what you're doing.)
2006-09-05 20:01:17 · answer #3 · answered by jennilaine777 4 · 0⤊ 1⤋
More importantly, how much is your friend going to be liable for -
if he/she misses something important, causing you expense and aggravation? Or even the deal. If the answer is 0, then your friend should be paid a "finder's fee", not a percentage. Usually no more than $500.
If you want more protection, hire a licensed agent. .
2006-09-05 20:23:18 · answer #4 · answered by OShenandoah 3 · 1⤊ 0⤋
Is your friend a real estate professional? The contract for the sale should should have a section that says where and how much the commission should be. And would there be any other realtors involved? 3-6% is normal, but if it is just for a few hours of work, speak w/ your friend. If your friend is a Realtor, his/her broker would get 1/2 of what he/she gets.
2006-09-05 19:57:11 · answer #5 · answered by Michelle G 5 · 0⤊ 1⤋
2%
2006-09-05 20:05:28 · answer #6 · answered by bigg_dogg44 6 · 0⤊ 1⤋
Is he a real estate agent?
2006-09-05 19:52:04 · answer #7 · answered by Anonymous · 1⤊ 0⤋