Compensating my Real Estate Agent

Compensating my Real Estate Agent

I have a new Real Estate agent that I’m working with. We’re both new at this and going to figure this all out here eventually. But here is what I’m trying to figure out. In the beginning she’s not going to get much of a commission on her sales because the Broker she has takes 45% of her commission until after so long then that amount goes down. I think that’s how the Broker gets their money back spent getting her licensed and up and going. Plus, she has to buy writers insurance on her contracts which are another $125 on top of that.

I WANT her to make money at this too. Here’s the scenario. I’m going to bid 20K on a house she’s showed me. If the offer is accepted her income would only be around $200 from the deal. Not much money for her efforts. Now, I want to assign this deal if my offer is accepted. I want to bring her in on this deal a little further if I can. I want her to show this property to my prospective investors.

My question is how can I compensate her in doing this if an investor takes the assignment? I know Carol Stincen is partners with her agent and splits her assignment with him, but, I don’t know that I really want to go that route if I don’t have to. I would rather compensate her if I can. A flat fee maybe? Does anybody know how I can make this a win situation for her too? And still be within the Real Estate code of ethics thing.

Any suggestions DG family?



Owen Properties, LLC

Flat Fee

Make a tier and assign a flat fee. For 20K I would suggest a commission of 1K.

Not sure what state you're

Not sure what state you're in, but if the law is the same as in NY state, legally your agent has to reveal to their broker what they make and has to give wherever % they have agreed upon.

If there % deal is 50/50 and you give her $1k, she legally has to give her broker $500. If she doesnt like her arrangement tell her to get a new broker.

If she has an attorney, have them rep your friend; that way her fees might be more flexible

Hope this helps

Thanks elixbrown

She checked out all the brokers here and narrowed it down to this broker. They're all about the same here (Wichita, KS)She negotiated 45%. They origianlly wanted 50%.

So if I understand you correctly, if I paid her a flat fee for showing my assignment and it sold, then she has to pay half that fee to her Broker. Right?

Thanks again for all the input.


Owen Properties, LLC

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