Finder's Fee for Realtors - How much do you pay?


We do not use a real estate agent to list homes on the MLS. We use other advertisement methods and sell them on our own. However, twice this year we’ve had real estate agents bring buyers to us. The agent does very little - I show the home, tour the community, conduct closing and handle all aspects of the lending and titling.

However, I certainly want to provide the realtor a payment for their help and hope to continue the relationship with them. Both of the homes mentioned sold for $80,000. In the scenario I just gave, how much would you guys pay the realtor?


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I would pay the realtor their standard % comission BUT…
What I have done in the pst when selling a home and a realtor approches me saying they have a potential buyer is to tack their fee on top of my asking price. I work this out with the realtor in advance of them involving their buyer. I then pay the agent their fee from the higher sale price.
In essance the buyer is paying the agents fee wich is generally in the 5% range.

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We have RE agents sell the homes end to end. We do a $3K flat commission regardless of home price. Win-Win scenario because they get volume sales (lots of infill and parks with homes always for sale), we don’t have to do any work to sell the home and RE agents tend to find higher quality tenants.


Aren’t RE commissions 3% buyers agent/ 3% sellers agent? I thought that was the national average? Just curious.


I would say that yes, that is the national average when a realtor lists the home, shows the home, closes the home and basically does everything. The scenario I’m presenting is, the realtor calls me and tells me they know someone wants to buy the home in my community. I then show the home and close the home and at that point have already advertised the home. So, I’m essentially paying the realtor a fee for calling me and giving me a lead.

I am considering just using a local realtor to show my homes in which case I’ll just go with that standard model.


As a real estate broker, there isn’t a fixed or average price for broker fees. Negotiation is vital in determining these fees.

I don’t personally handle the sale of manufactured homes; I usually hire a manufactured home dealer or a real estate agent for this purpose. Together, we establish a pricing structure that suits both parties. Here’s an example of what we’ve agreed upon:

  • Homes under $10K: Flat fee of $1500
  • Homes between $10K and $50K: Flat fee of $3500
  • Homes $50K and above: 6% commission or $6500, whichever is higher.

In exchange for this pricing structure, we promise all the listings in the area to that agent. We do add the caveat that the agreement will only last so long as they perform.

This approach has proven successful. Agents understand that working on smaller deals leads to opportunities with larger homes, creating a win-win.

We had one agent who used one of our smaller listings as a teaser property. The small home ($19K in CA) took a long time to sell. Looking back, I believe she was steering the clients away from our deal and onto a home with a higher commission.

So your agent gets 15% on a 10k home; 7% on a 50k home and 6% on everything else. Sounds like the negotiation only goes one way. Well with all the lawsuits and settlements coming to pass it appears the entire industry is in for (in my humble opinion) a serious ground shifting shakeup.