site spotting fees?

cityboy

cityboy

Hello fellow Somersofters,

I found a DA approved site for 4 townhouses for my friend's (who's a financial planner) client and have no idea what to ask for as a spotters/finders fee. Its advertised as $680k+ and i didnt actually do any work or negotiations except just finding it and recommending it to his clients needs and budget.

Does anyone here know whats a fair or conservative amount to ask for as a finders fee?

Thanks heaps in advance :)
 
cityboy said:
Does anyone here know whats a fair or conservative amount to ask for as a finders fee?
Click to expand...

How about $0, zip, zilch, zero, narda, nothing :rolleyes:since:
1. You did not agree any price with the client to start with.
2. You are not licensed (I presume) to be offering real estate services to anybody.....that why the Dept of Fair Trading has a compensation scheme and a licensing scheme in place for REAs & BAs.
 
If place is "advertised" than its nothing he couldn't see himself. Unless you were specifically asked to find it.

And since when do I or the person I ask to let me know if he see a good deal need a licence?
Does not apply.
 
Prop,

Do you need one. (I ssuspect not). Just like you get a finders fee for any other service or referral??

Also a question for the OP.

So the clients Financial Adviser is finding property deals for your client as well. Is this ethical? I'm sure FP's have a code of ethics, and this would seem as though there could be a conflict of interest?

I am sure some of the FP's on this site can set us both straight!

F
 
Ergophobia said:
The going rate is 10%....




If you can say that with a straight face, it's worth a shot :$
Click to expand...

#$%&!

No way.

If it is 10%, I better change jobs...... Well not change jobs....something I can do in my spare time (like all this other property stuff we are doing).

No way in hell would I pay 10% for such a service.

There are heaps of deals out there that are ready to go at great deals........ Maybe I might have to think about bringing in more 'part time' cashflow

All depends on individuals circumstance and position.

I would assume that the 10% fee is more than a finders fee. It would be a holding hand exercise from initial property inspection to passing keys over (bit like a RE).

Tell me I am wrong, so that I can get start filling out my pink slip!:)

F
 
You can charge whatever you want as it is a business service. Whether someone will pay you for it is another matter of course...
 
lol thats a lot higher than i expected.. i was and probably will ask for a 1% finders fee considering proper licensed buyers agents can provide the whole entire service for just over 2% is that right?

and to answer fudge's question this actually isnt my client.. this is my friend's (who is the FP) client. how does a FP recommending property deals to their clients present a conflict of interest? was under the impression that happens all the time..

thanks for the info guys
 
I better say that as there are a few buyers agents on here, this is something completly different.

I am assuming just for you to say you have a great bit of property (ready to go), that 10% would be steep!

Buyers agents offer a range of additional services ON TOP OF FINDING A PARTICULAR PROPERTY, so just wanted to get my story straight.

But then again, I guess you can ask for whatever you want. Ideally though, having this fee agreed up front is the only ethical (and legal) way to go!

F
 
cityboy said:
Hello fellow Somersofters,

I found a DA approved site for 4 townhouses for my friend's (who's a financial planner) client and have no idea what to ask for as a spotters/finders fee. Its advertised as $680k+ and i didnt actually do any work or negotiations except just finding it and recommending it to his clients needs and budget.

Does anyone here know whats a fair or conservative amount to ask for as a finders fee?

Thanks heaps in advance :)
Click to expand...
Ignore all advice from financial planners,they have no more chance of getting it right then you do, i would not give you one cent that's the problem with property every body all along the line wants paper bags filled with fast bucks for doing "SFA" ..
 
Did you negotiate a fee before going out and finding a location for your friends client? If not, then you are entitled to 10% of nothing. Which equals nothing.

Imagine it the other way around, someone tells you about something for sale, then afterwards comes along and says "oh by the way, I know we never discussed this before, but I would like $68k please".

What would you tell them to do?
 
If you didnt put in any work (or not much) then charge nothing. Why would you charge a fee anyway? You've been reading too many RE guru books maybe.
 
lol fair enough lesson learned guys.. and my friend (the planner) said yep close to quarter of a percent to find, do feasibility n negotiate.. def too many RE guru books!
 
cityboy said:
lol fair enough lesson learned guys.. and my friend (the planner) said yep close to quarter of a percent to find, do feasibility n negotiate.. def too many RE guru books!
Click to expand...

I was selling my old bomb of a car for $2k about 10 or so years ago.. a mate offered to to tell his mate's about it etc but if and that one of them bought it, I could slip[ him $200-300, you'll take $1600 won't ya ? (before his "commission"

I think I did the right thing saying yeah don't worry about it.
 
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