U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
 
Old 08-24-2009, 05:01 PM
 
3,756 posts, read 5,742,592 times
Reputation: 1042
Default Rent w/Option to Buy Agent's Commission

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?
Reply With Quote Quick reply to this message

 
Old 08-24-2009, 05:08 PM
 
Location: Nine Mile Falls/Spokane, WA
856 posts, read 2,920,623 times
Reputation: 482
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?
Reply With Quote Quick reply to this message
 
Old 08-24-2009, 06:01 PM
 
3,756 posts, read 5,742,592 times
Reputation: 1042
Quote:
Originally Posted by WendyK View Post
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.
Reply With Quote Quick reply to this message
 
Old 08-24-2009, 08:43 PM
 
Location: South Metro Denver for 25 years
8,585 posts, read 18,727,491 times
Reputation: 4316
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.
Reply With Quote Quick reply to this message
 
Old 08-24-2009, 10:21 PM
 
3,764 posts, read 4,439,270 times
Reputation: 1809
Quote:
Originally Posted by BLUEDIAMOND64 View Post
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?
Reply With Quote Quick reply to this message
 
Old 08-25-2009, 05:18 AM
 
3,756 posts, read 5,742,592 times
Reputation: 1042
Quote:
Originally Posted by jdm2008 View Post
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.
Reply With Quote Quick reply to this message
 
Old 08-25-2009, 05:59 AM
 
Location: San Antonio
4,085 posts, read 6,333,538 times
Reputation: 3155
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.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
Similar Threads

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top