Rent w/Option to Buy Agent's Commission (agents, contract, closing) - Real Estate Professionals - City-Data Forum

BLUEDIAMOND64 · 08-24-2009, 05:01 PM

How do agents get their commission on a house that rents with an option to buy? Is it something that agents smile or frown upon?

WendyK · 08-24-2009, 05:08 PM

they don't get paid until it actually sells -- it's usually written up in the contract with terms that apply to both the rental and the purchase, if it's acted on at the end of the lease term. Agents smile whenever they can help someone with their housing needs, right?

BLUEDIAMOND64 · 08-24-2009, 06:01 PM

Quote:

Originally Posted by WendyK

they don't get paid until it actually sells -- it's usually written up in the contract with terms that apply to both the rental and the purchase, if it's acted on at the end of the lease term. Agents smile whenever they can help someone with their housing needs, right?

Wow, no wonder why the agent was not too happy. Have to wait a long time for that commission - certainly understandable......thanks.

2bindenver · 08-24-2009, 08:43 PM

If a lease purchase is the way to go; I write that I get a small fee at move in and the full fat commission at closing.

I have a 40% closing rate for lease purchases with the renter/buyer. So, that means I often have to market the property for a 2nd buyer.

jdm2008 · 08-24-2009, 10:21 PM

Quote:

Originally Posted by BLUEDIAMOND64

How do agents get their commission on a house that rents with an option to buy? Is it something that agents smile or frown upon?

I assume its spelled out in your contract? What does it say about it in yours. Did the agent bring in the buyer?

BLUEDIAMOND64 · 08-25-2009, 05:18 AM

Quote:

Originally Posted by jdm2008

I assume its spelled out in your contract? What does it say about it in yours. Did the agent bring in the buyer?

Actually we just got the proposal yesterday and I think the agent was somewhat surprised when we told her we would consider this option. I would definitely have an attorney draw up the contract.

kevcrawford · 08-25-2009, 05:59 AM

Lease options, while it may sound appealing to you, RARELY work out like planned. Most of the time the person leasing the house will keep trying to get you to renew the lease over and over and over, or they'll default.

It sounds a lot better than it really is. There's a reason that agents don't really like them. It's not because we have to wait for the commission. It's because we know it won't go through as planned and we'll be passing up good, qualified, buyers while you're tinkering with a deal that won't end up working in the long run.