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Hello, We had a realtor who helped us with the self employed documentation in order to get an SBA loan. We didn't officially agree on a percentage but she was talking about 6% (if I remember correctly)... but that just seems too high and once it was all sent in, then we were following up on it after that. Now that we have received the money, we do want to be fair, so what percentage would be a fair amount? Any ideas will be greatly appreciated. Thank you!
I don't understand how a realtor assisted with a business loan application (that seems more the role of a lawyer or investment specialist), but 6% definitely seems too high. With a sales/purchase of property, the commission is often in the 5-6% range, but that's split between buyer's agent and seller's agent, and further split between brokerage and agents.
However, if you have no written agreement, and you never verbally agreed on an amount, I don't know if legally you owe her. I guess the questions I would consider would be: how much time did she spend helping you out? How much money would each % be? What unique value did she add to the process?
Are you saying that the Realtor's overall commission was 6% of the sale price ??
Did she have two sides of the transaction.....both the Seller's and Buyer's Commish ??
Did she keep this Loan with the Mortgage team within her Realtor's Office ??
Do you mean your Mortgage was based on Self-Employed Income only ??
In my opinion, 6% overall is too high in this Real Estate Market. And there are built-in commissions on any In-House Mortgage deal. I think your Realtor was amply compensated.
Like others I find this scenario odd. If the loan was connected to you buying property for a business then the Seller would traditionally pay the commission on the sale - nothing on the loan, but the sake. If the loan was a business loan, like other sI'm not sure why a realtor was involved. You may also want to look at the fine print of your loan because SBA loans often are specific about what the proceeds can be used for.
Are you saying that the Realtor's overall commission was 6% of the sale price ??
Did she have two sides of the transaction.....both the Seller's and Buyer's Commish ??
Did she keep this Loan with the Mortgage team within her Realtor's Office ??
Do you mean your Mortgage was based on Self-Employed Income only ??
In my opinion, 6% overall is too high in this Real Estate Market. And there are built-in commissions on any In-House Mortgage deal. I think your Realtor was amply compensated.
This was apparently not a real estate transaction but an SBA loan application. Real estate commission rates are irrelevant.
Have you ever navigated an SBA application? Without some experienced help, many people would be unable to know if they have done it properly and would as a result not get the loan. Experienced assistance is very often the difference in approval and denial. We need more details about this transaction especially the amount of the loan before we can offer opinions..
This was apparently not a real estate transaction but an SBA loan application. Real estate commission rates are irrelevant.
Have you ever navigated an SBA application? Without some experienced help, many people would be unable to know if they have done it properly and would as a result not get the loan. Experienced assistance is very often the difference in approval and denial. We need more details about this transaction especially the amount of the loan before we can offer opinions..
Some of us have navigated an SBA loan application and that's why we're wondering why a realtor would be involved and why they would ask for 6%. Sounds shady as presented.
Some of us have navigated an SBA loan application and that's why we're wondering why a realtor would be involved and why they would ask for 6%. Sounds shady as presented.
Agreed - I mean, if they were helpful in advising in some capacity, get them a $250-500 gift certificate to a favorite restaurant, write a lovely thank you note and call it a day.
But I can’t think of any reason why a realtor would be involved in a SBA loan app. Almost wondering if OP meant a FHA mortgage and not SBA loan???
Mortgage Brokers only make around 1-2% of the loan they broker, and they typically do a LOT of work to close them. There's no way this RE agent should get more than that, at a maximum.
Feel free to Google it, and point that out to the RE agent.
In the future though, I suggest you do NOT ever do this again unless you have a firm signed contract of what pay they'll get AFTER the loan/etc is completed and funded.
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