Finders Fee?

[Daisy7777]

Hello,
We mentioned to our neighbor that we were thinking of selling our house. She happened to know someone who wants to buy our house. We showed them our house and it looks like they are going to buy our house.
My neighbor also happens to be a Broker, but she works with rentals and does not buy and sell real estate nor did we list the property with her or her company.
We have been friends many years and I know if this deal goes though she is saving us much on commissions.
We are asking $325,000 for the house. How much of a finders fee should we give her?
She did not ask for a finders fee but I want to give her one fro saving us commissions, and selling time etc.

 

[30ashopper]

Hello,
We mentioned to our neighbor that we were thinking of selling our house. She happened to know someone who wants to buy our house. We showed them our house and it looks like they are going to buy our house.
My neighbor also happens to be a Broker, but she works with rentals and does not buy and sell real estate nor did we list the property with her or her company.
We have been friends many years and I know if this deal goes though she is saving us much on commissions.
We are asking $325,000 for the house. How much of a finders fee should we give her?
She did not ask for a finders fee but I want to give her one fro saving us commissions, and selling time etc.

Hard to say, depends on her involvement. 3K / 1% maybe? Do you have someone who knows what they are doing handling the paperwork? Be careful and congrats on finding a buyer!

 

[Ari Silverstein]

Hello,
We mentioned to our neighbor that we were thinking of selling our house. She happened to know someone who wants to buy our house. We showed them our house and it looks like they are going to buy our house.
My neighbor also happens to be a Broker, but she works with rentals and does not buy and sell real estate nor did we list the property with her or her company.
We have been friends many years and I know if this deal goes though she is saving us much on commissions.
We are asking $325,000 for the house. How much of a finders fee should we give her?
She did not ask for a finders fee but I want to give her one fro saving us commissions, and selling time etc.

10% to 50% of what she saved you. ;-)

 

[livingiSoWal]

I would estimate had you listed the house you would have paid 5-6% commission. I would give her 2.5-3%, and probably leaning more twords three if she is doing the paper work. My reasoning is that she actually, on her own, connected both buyer and seller which would have allowed her the full 5-6% if she had the listing.

 

[Daisy7777]

I was speaking to another realtor and she said she might pay 1% of her commission as a finders fee.

A asked a real estate attorney and they said you can give someone a $600.00 "gift". Anymore than that and it will be taxed.

 

[Em]

You have to be careful as you don't want her good deed to get her or you in trouble with the Florida Real Estate Commission. Some people use the term "broker" loosely. If she owns the real estate company and is the broker of record, she can accept the fee. However, if she is a "broker associate," working for another broker, she cannot legally accept any money for the connection. However, the broker for whom she works can accept the fee and then pay her.

Just ask her before cutting a check so that both of you are legal. Realtors can loose their license for something like this if it isn't done correctly.

 

[Daisy7777]

Hello,

I have heard it could be illegal for anyone that does not have a license to accept any money for a transaction.

She has a brokers license but is a rental manager for a real estate company that is owned by a broker.

I think the "gift" idea is the best.

She already told me I didn't have to give her anything because the person she found is a friend of hers too.

 

[Ari Silverstein]

Careful, Careful !

Hello,

I have heard it could be illegal for anyone that does not have a license to accept any money for a transaction.

She has a brokers license but is a rental manager for a real estate company that is owned by a broker.

I think the "gift" idea is the best.

It is illegal to receive but not pay a Finder's Fee to an unlicensed individual. If you pay her anything, it will be construed as part of the real estate transaction, as it should, since it is. You wouldn't be giving her a gift for no reason.

Well,if you are, I would like one too.

Paying her directly is most probably a violation of her arrangement with her Managing Broker. But that is between her and her MB. ;-)

 

[wrobert]

I was speaking to another realtor and she said she might pay 1% of her commission as a finders fee.

A asked a real estate attorney and they said you can give someone a $600.00 "gift". Anymore than that and it will be taxed.

More than $600 requires a 1099 for the income. Less than $600 still requires it to be reported.