Home Buying in Portland>Question Details

Derek Goude, Real Estate Pro in Portland, OR

What do you think fair compensation would be ? Found an off market home for my buyers and the seller does not have representation.

Asked by Derek Goude, Portland, OR Tue Dec 17, 2013

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9
This question shouldn't even be asked. Note to other brokers: DO NOT DISCUSS COMPENSATION/FEES as is is against fair trade laws.
2 votes Thank Flag Link Tue Dec 17, 2013
you get it........ I get it........................ but unfortunately, many agents do NOT get it!
It's amazing.....have they not heard of anti trust laws?
Flag Thu Jan 9, 2014
Do you have a buyer's agency agreement? If so, that should spell the comp out. If you are asking the seller to comp you, that should have been agreed to before you showed the property. I would not be surprised if you worked for free in the end.
1 vote Thank Flag Link Tue Dec 17, 2013
Don't know why Illinois-based brokers are giving advice in Oregon. I'm licensed as a lawyer in both states and I wouldn't go there if I were you. Both states have different laws and I doubt your E&O coverage would protect you if someone decided they were wronged.
Flag Tue Dec 17, 2013
Haven't showed the home yet. Yes I do agree that I need some paperwork so I get compensated. Initially, I am thinking 3% to do both sides would be fair to everyone involved. If it was active on the market the seller would likely pay 5% - 7%.
Flag Tue Dec 17, 2013
How do you find "off market homes" in the Portland, OR metro area?
0 votes Thank Flag Link Sun Apr 6, 2014
FSBO owners can list home on line and in the Oregonian.. depends. If you have a particular neighborhood you are looking you can drive the streets looking for FSBO. If you were working with a good realtor she could get a list of expired listings through RMLS...and call the owners and see if they still want to sell... and she could negotiate a lower commission if she wrote the offer for you. You are much better off with a good realtor working for you than doing it on your own. Her experience and knowledge would save you time and money over the long run. Call me if you are still in the market. or check me out at Jennifershetler.com . I am a native of Portland , have two grown sons in the area...and love my work.
Flag Sun Jun 22, 2014
Start with your Principal Broker.
0 votes Thank Flag Link Thu Jan 9, 2014
My recommendation is to begin with the standard fee for professional services for a normal listing and the adjust it to where you feel it should be to reflect compensation for your total services. It would seem that somewhere between 3 and 6 percent would be realistic.

Good luck,

Bill
0 votes Thank Flag Link Tue Dec 17, 2013
- Don't know why Illinois-based brokers are giving advice in Oregon. I'm licensed as a lawyer in both states and I wouldn't go there if I were you. Both states have different laws and I doubt your E&O coverage would protect you if someone decided they were wronged.

Well, Jack, I also don't think they'd sue an agent in Illinois based on what they read on Trulia, but maybe you want to try to establish a precedent?

Here in Washington State, we have two great forms that our MLS provides: one is a Selling Office Commission form, which is an agreement between the buyer's agent and the seller for a commission. The other is a Buyer's Agency Agreement, which is an agreement between the buyer and their agent.

Fair compensation? I think your typical co-broke should be fine. How is it not like any other FSBO?
0 votes Thank Flag Link Tue Dec 17, 2013
Mack - I doubt anyone will sue over someone giving a broker advice, but if the public gets wronged, then all bets are off. The State of Oregon is very protective of consumers. I know that people posting on Trulia are genuinely trying to be helpful, but why take the risk of being wrong in a state where they don't live, don't practice, and don't know the laws?
Flag Tue Dec 17, 2013
At least 3% don't forget if something happens and you go to mediation arbitration your on the hook for $2500 so depending on price how much of that 3% covers that.

Kevin Sucher
0 votes Thank Flag Link Tue Dec 17, 2013
Ask for, and negotiate, whatever you are comfortable with.

This clearly needs to be done before you show the home.
0 votes Thank Flag Link Tue Dec 17, 2013
I would ask for 2.5%. Remind the seller that you brought him a qualified buyer, less stress about it being on the market with showings if it were listed. That would be your normal compensation if you sold one that was listed. I have had no problem getting commissions from FSBO's. Also remind seller this is how you make your living. Quiet diplomacy with benefits for seller will make all involved happy.
0 votes Thank Flag Link Tue Dec 17, 2013
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