[linnealand]

An acquaintance of ours has put an expensive property on the market. He has offered a percentage of the profits to my boyfriend if he is able to find a buyer. Although it's still a little early to tell (we expect to be hearing their decision later this week), there is a possibility that my boyfriend may have found that buyer.

In a situation like this one, what is the average percentage of commission on the selling price? Would it be any different from the commission earned by a professional Realtor? What does a Realtor typically earn on a sale?

The following is an extra question, although we have some suspicions about what the answer will be. Let's say the seller is asking X dollars for this home. If the intermediary manages to sell the property for more than that price, are there any additional financial advantages to that intermediary (other than the additional profit taken in through the original percentage established), meaning (a) that he would be able to earn a greater percentage on the additional profit, or (b) he might actually be able to earn whatever money comes in above the seller's original asking price? The reason I'm asking this is because there is a lot of money involved, and I would rather ask too many questions than find out later that he did in fact have the potential to make more than he did (assuming for the purposes of argument, of course, that he actually manages to sell the property for a sum that is higher than the original asking price). The owner of the property is business savvy, so I would like us to know what we're talking about.

Thanks for your help!

[twinkiedooter]

Get any commissions to be paid upon the completion of the sale in writing. When it comes to money, most people don't want to part with it if they can help it and if your boyfriend does have a buyer, he's not going to get his share unless he has it in writing from the person who is going to pay him.

[Fr_Chuck]

Actually it is illegal to collect a commission for selling real estate if you are not a licensed agent, so the seller can just not pay you, since you can not collect a debt for a illegal activity.

And a contact to pay a commission for a real estate sale to a non licensed broker is not valid or enforceabe.

But if they decide to do a illegal business deal 6 percent to a broker for both listing and selling is normal
For just selling 2 to 3 percent would be close

[linnealand]

It's for finding the people, not for doing the deal. My boyfriend and a very good friend of ours who happens to be a lawyer connected their contacts. The lawyer friend knows a couple who are looking for a home in this price range and in this specific square. It just so happens the seller's goal and the buyers' goal could very well match up. My boyfriend and the lawyer were given the keys, and they showed the home to the couple's real estate agent. The agent is hopeful, so he's bringing the couple to see it later this week. The actual transactions will be going through the proper people. My boyfriend was offered 2% by the seller if it goes through. He and the lawyer will split that profit. I'm checking to see if that's right. I'm also curious about the second part of the post.