Who pays the buyer's agent commission in an off-market, wholesale transaction?

Unlike on-market MLS transactions where the seller pays the buyer's agent commission (typically 2.5% - 3%), the standard in off-market, wholesale real estate transactions is for the the buyer to pay their agent's commission.

OfferMarket is agent-friendly!

Off-market listings on the OfferMarket real estate marketplace are designed to accommodate buyer agents. Buyer's agents submit offers directly on the OfferMarket listing and sellers have the opportunity to accept, reject or counter. Depending on the seller's motivation and buyer demand for the listing (i.e. multiple competitive offers received), the seller may ask for a slight commission or offer price adjustment to make your offer the winning offer.

Buyer Agents That Understand Off-Market Listings Add More Value For Their Clients

Off-market For Sale By Owner (FSBO) and wholesale real estate transactions are typically not priced for the seller and assignor (wholesaler) to pay buyer agent commission. Unless the seller explicitly states in their listing that they are offering a 2% or 3% commission to buyer's agents, it should not be expected of the seller and/or assignor to pay the buyer's agent commission for an offer at asking price.

If you're an agent representing a buyer in an off-market transaction, there's no need to worry, there's always a way to make the deal work for all parties involved.

The following are the most common arrangements to ensure the buyer's agent is fairly compensated:

  1. Buyer pays their agent a 2% commission (most common for wholesale, distressed properties)
  2. Buyer increases the purchase price in their offer and asks for the seller to pay a 2% to 3% commission (most common for wholesale, distressed properties)
  3. Seller happily accepts offer at asking price and pays fair commission to buyer's agent (most common for FSBO and OfferMarket Exclusive Listings.

Investor-focused buyer's agents are easy to work with and get an off-market deal done quickly. Buyer's agents who are not familiar or experienced with off-market transactions frequently introduce major friction which derails deals and causes unnecessary effort and stress for all parties. If you are an agent representing a buyer in an off-market transaction, it is important that you reset your expectations according to the norms of off-market transactions and adapt to get the deal done for your buyer with terms that work for everyone.

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